Kenneth Andrade, chief investment officer of IDFC Mutual Fund, has put in his papers and is serving his three months notice period, reports say. He manages Rs 8,000 crore of equity at IDFC Mutual Fund which has total assets of around Rs 52,000 crore. He is moving out at the peak of his performance.
This is after giving a 110 per cent dividend payout on IDFC Equity Opportunities Series, a close ended fund which was launched in March 2013. Another fund, the IDFC Premier Equity Fund which is his flagship fund has returned 19.33 per cent annually for the last seven years as compared to 8 per cent for the BSE500.
It was with the performance of IDFC Premier Equity Fund that Andrade built himself a reputation.
His biggest bet was Page Industries that he has been holding for many years and accounts for 8 percent of the portfolio.
Andrade who has been acknowledged as one of the best fund managers in the midcap space has decided to look for options that are ideally different from mutual funds.
Sources close to him say that he felt the current mutual fund model needs a change. Investors are promised long term returns but fund managers are forced to perform for the short run. Again, the mutual funds model is completely sales driven and it becomes more of a vehicle that collects money than manage money.