Buy and hold in India

INDIA

When investors think ‘emerging markets', many think of high volatility and hefty pan-market swings that force nimble managers to switch positions as opportunities present themselves, then evaporate.

One exemplar of this stereotype is Greg Coffey, star trader formerly at GLG Partners, who churned the $4.6bn global EM hedge fund 56 times in May 2008, before he moved to rival Moore Capital. He made 5.1% that month, arguably vindicating a turnover rate equivalent to $255bn of EM securities in 31 days. But Mumbai-based long only manager Motilal Oswal Asset Management has one suggestion for investors, in Indian stocks at least, considering doing the same: Don’t. Manish Sonthalia, lead portfolio manager, takes a buy-and-hold, valuation-based investment strategy in Motilal’s flagship...