Thursday, July 26, 2007

Riding the Jockey

Interesting coverage on Madhusudhan Kela, the star Fund Manager of Reliance Mutual Fund by Bloomberg. I liked his focus on absolute returns and small town wisdom speak –

“You have to identify the jockey. Then the jockey will ride the horse.''

“You get the shade today because someone planted a tree a long ago”.

So far so good… now read this.

We have had three years of learning now and the overall investment philosophy is well-defined. We have detailed spreadsheets and questionnaires for every company that we start covering. We have a checklist of processes and rules on how to invest in large-caps and how to invest in mid-caps, what can qualify and what can't, etc.."

here’s where the smugness creeps in -

I go now that he’s making the mistake most of his tribe make. Over time they tend to relax. Catty instincts blunt and systems and protocols takeover. Market is quite unforgiving on softies. It just strikes. Not many have been able to face up to it.
Be on your toes, Madhu... we love you for that !

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