Jefferies' Chris Wood Adjusts Portfolio: New Stocks and Sector Allocations

Chris Wood, the global head of equity strategy at Jefferies, has recently revealed the latest adjustments to the brokerage's India long-only equity portfolio. These changes come after the sale of the entire stake in Reliance Industries and Axis Bank, along with a reduction in investments in ICICI Bank, REC, and JSW Energy. The portfolio now includes a basket of Indian stocks across various sectors, with new additions such as Ambuja Cements, Le Travenues Technology (Ixigo), and Lemon Tree Hotels, each with a 4% weighting.

The financial sector remains a significant part of the portfolio. ICICI Bank, HDFC Bank, and State Bank of India each hold a 4% weight. SBI Life Insurance, with a 6% weight, is the highest in this category, followed by REC Limited and PolicyBazaar (PB Fintech) with 4% and 5% weights, respectively. Manappuram Finance and Home First Finance also feature with 4% allocations.

In the real estate, infrastructure, and cement sectors, DLF and Macrotech Developers each have a 4% weight. Adani Ports & Special Economic Zone and GMR Airports Infrastructure also carry a 4% weight, while Ambuja Cements, owned by the Adani Group, rounds off this basket with a 4% weight.

The industrials and energy sector includes ABB India and JSW Energy, both with a 4% weight. These stocks have faced significant price drops year-to-date, down over 20% and 15%, respectively.

In the consumer and telecom sectors, Zomato and Bharti Airtel have been given 4% and 5% weights, respectively. Zomato has seen a surge of over 50% in the last six months, while Bharti Airtel shares have gained 23% year-to-date.

The travel and hospitality sector includes MakeMyTrip, Le Travenues Technology (Ixigo), Lemon Tree Hotels, and InterGlobe Aviation (IndiGo), each with a 4% weight. These stocks have shown mixed performance, with Ixigo and Lemon Tree Hotels performing particularly well.

In the automobile sector, TVS Motor Company and Mahindra & Mahindra each hold a 4% weight. TVS Motor Company has seen a 26% increase in its stock price over the last year, while Mahindra & Mahindra shares have risen 30% in the last six months.

These adjustments reflect Chris Wood's strategic approach to diversifying the portfolio and capitalizing on sectors with strong growth potential. Investors should keep an eye on these stocks and the overall performance of the portfolio in the coming months.