2 weeks ago
Old Bridge Focused Fund Outperforms Through Value, Cash, and Discipline
Kenneth Andrade manages a mutual fund called Old Bridge Focused Fund.
The fund invests in a small number of companies instead of spreading money across many stocks.
It chooses businesses that appear reasonably priced, have manageable debt, and may grow over time.
The fund also keeps some money in cash, which helped reduce losses when markets fell in early 2026.
It later gained 25% between April 1 and August 14, 2026.
Since it started, it has achieved a 14.7% annualized return, according to the article.
However, its investments can still be risky because the portfolio is concentrated.
The article says investors should consider it only if they can tolerate high risk and remain invested for at least five years.
Kenneth Andrade’s Old Bridge Focused Fund has delivered a 14.7% CAGR since inception.
The fund’s returns have exceeded its category median and the BSE 500 Total Return Index across reported periods.
Cash holdings of 10-17% and large-cap allocations limited losses during the first quarter of 2026 market turmoil.
The portfolio emphasizes low-debt, capital-efficient, reasonably valued or out-of-favour businesses.
The concentrated fund may suit investors with high risk tolerance and an investment horizon of at least five years.
- Who
- Kenneth Andrade and co-fund manager Tarang Agrawal manage Old Bridge Focused Fund.
- What
- Old Bridge Focused Fund has generated strong returns while using a value-conscious, concentrated investment strategy and maintaining cash reserves.
- Where
- The fund invests in Indian equities and is being assessed against Indian market indices and focused-fund peers.
- When
- The fund launched in January 2024; reported returns are primarily measured through August 14, 2026, with some performance data stated as of August 17, 2026.
- Why
- Its performance is attributed to disciplined stock selection, value-oriented holdings, cash allocation, and exposure to large-cap and specialized mid- and small-cap businesses.
Case for the Fund
Reasons for Caution
Performance
Case for the Fund
The fund has outperformed its category median and the BSE 500 Total Return Index across the reported periods, including a 23.0% one-year return.
Reasons for Caution
The article cautions that past returns do not guarantee future performance, and the fund’s returns can differ from higher-growth momentum strategies.
Downside protection
Case for the Fund
Maintaining cash and holding 39-46% in large-caps during the first quarter of 2026 helped limit the fund’s decline relative to its benchmark.
Reasons for Caution
Cash allocations of 8-15% during the recovery period also muted returns compared with the Motilal Oswal Focused Fund.
Investor suitability
Case for the Fund
The fund’s disciplined, value-and-growth approach and concentrated stock selection may appeal to investors seeking long-term wealth creation.
Reasons for Caution
Its portfolio of up to 30 stocks requires a very high risk appetite, and value or contrarian investments may need at least five years to work.
Key facts
- Fund launch
- Old Bridge Focused Fund launched in January 2024.
- Assets under management
- The fund’s AUM exceeded Rs 3,995 crore approximately two and a half years after inception.
- Since-inception return
- The fund recorded a 14.7% CAGR as of August 17, 2026.
- One-year return
- The fund delivered a 23.0% absolute return over one year, based on data through August 14, 2026.
- First-quarter 2026 drawdown
- The fund fell 11.9% from January 1 to March 31, 2026, compared with a 13.9% decline for the BSE 500 Total Return Index.
- Recovery-period return
- The fund gained 25.0% between April 1 and August 14, 2026, compared with 15.5% for the BSE 500 Total Return Index.
- Portfolio structure
- As described in the article, the fund held 24 stocks, with approximately 43% in large-caps, 34% in small-caps, and 15% in mid-caps.
Quotes
Kenneth Andrade
Chief investment officer and founder of Old Bridge Capital Management
“Need to figure out a good entry point and then target the end of the cycle over the next few months”
financialexpress.com
Sources
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