With macroeconomic and corporate earnings data largely factored in, and the timing now ripe for optimism in selective segments of the market, Quant Mutual Fund is nearing full deployment. The fund believes its risk-off phase is coming to an end, and a healthy pullback rally is on the cards for January.“Although macroeconomic and corporate earnings data warrant attention, most, if not all, of these below-estimated figures have now been largely factored in, and the timing is ripe for optimism in selective segments of the market. Hence, we are close to being fully deployed and believe that the risk-off phase in India is nearing its end, with a healthy pullback rally on the cards for January,” the fund house said in its monthly release.

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The fund house believes that the market has the potential to recover and gradually rally from this point onward. Sentiment is turning increasingly negative, and many stocks are now trading in neglected or ‘hated’ territories.

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The fund house further advises that the timing is right to adopt a more constructive view on the markets and selectively build positions in certain segments with the potential for a faster recovery.

“We believe that the market has potential to recover and gradually rally from this point on. We are observing that sentiments are becoming quite negative and many stocks are now trading in neglected/ hated territories. From our perspective at quant Mutual Fund, the timing is right to become relatively more constructive on the markets and selectively build positions in certain segments of the market, which have the potential for a faster recovery,” the fund house said.

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Quant Mutual Fund mentioned that it highlighted the risk-off environment starting in July 2024, due to the worsening of both macro and micro data. In the last quarter, both of these factors have deteriorated further. In FY24-25 so far, there have been numerous earnings misses across corporate houses, with the depth of earnings revisions being heavily skewed towards downgrades.

“We have highlighted since July 2024 the risk-off environment, driven by worsening macro and micro data, and in the last quarter, both economic and corporate data have deteriorated. So far in FY 2024-25, there have been many earnings misses, largely from major corporate houses, and the depth of earnings revisions has been heavily skewed towards earnings downgrades. GDP growth, at a 7-quarter low of 5.4% in the quarter ended September 2024, also disappointed, missing estimates of 6.5% by a large margin,” said the release.

Quant Mutual Fund also mentioned that it has made five key additions to its investment team. The fund house emphasized its commitment to delivering superior risk-adjusted returns for its investors, supported by a dynamic approach to money management.

“Our endeavour remains to continue generating superior risk-adjusted returns for our investors, backed by our dynamic style of money management. To further elaborate, we have made the following additions to our investment team,” said the fund house.

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In the last month, the fund house has expanded its investment team by hiring the following:

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Lokesh Garg: Appointed as money manager, equity. He has worked with Kotak Institutional Equities and Credit Suisse/UBS.

Sameer Kate: Appointed as money manager, equity. Prior to this, he was a senior sales trader at Investec Capital and has worked with Kotak Securities earlier.

Ayusha Kumbhat: Promoted to money manager, equity. She has been working at Quant Mutual Fund as a Research Analyst for the past 15 months.

Varun Pattani: Promoted to money manager, equity. He joined Quant Mutual Fund in May 2021 as an Investment Analyst.

Rajiv Sankarnarayanan: Appointed as money manager, commodities. Prior to joining Quant Mutual Fund, he worked at Siemens EDA (Electronic Design Automation, formerly Mentor Graphics).