This smallcase is strategically designed to capitalize on sector rotation by identifying undervalued sectors in the current market.

Theme and Idea:

Our primary objective is to invest in sectors that are fundamentally sound yet undervalued at present. As these sectors recover and deliver returns, the portfolio will be rebalanced, shifting the focus to other sectors that are undervalued at that time. This dynamic approach ensures that investors can benefit from sectoral trends, capturing returns from market rotations while minimizing exposure to sectors that have already achieved fair value.

Rationale:

• Sector Rotation: Markets move in cycles, and different sectors outperform at different stages of the economic cycle. By focusing on undervalued sectors, we aim to harness the rebound potential, maximizing returns when these sectors recover.
• Rebalancing Strategy: The portfolio will not hold sectors indefinitely. Once a sector achieves its fair value and delivers returns, we will reallocate to new undervalued sectors, ensuring continuous growth and minimizing risks of overvaluation.
• Diversified Growth: We focus on sectors like Media, Oil & Gas, and Financial Services, which are currently undervalued but positioned for strong recovery. As the economic cycle progresses, we will adjust the portfolio based on market conditions, offering both short-term gains and long-term growth potential.