India’s fast-growing but beaten-down Internet firms are among key picks for the Bandhan Small Cap Fund, which beat 93% of its peers last year betting on deep-value stocks.
The $2.1 billion fund has added holdings like Paytm, Info Edge India Ltd. and IndiaMart InterMesh Ltd. in recent months, according to Manish Gunwani, chief investment officer of equities at Bandhan AMC Ltd., which manages more than $22 billion. All three firms are losing money for investors this year triggered by doubts over their fast-paced growth and as investors seek comfort of steady earnings growth in large-cap names amid rising global volatility.