The Investment Strategy of Samir Arora: Why He’s Betting on Travel and PSU Stocks

Renowned investor Sunil Arora, through his Helios funds, has shifted his focus on consumption and PSU stocks in his portfolio. Arora has increased his positions in travel-related stocks, catering to the shift in consumer spending towards experiences. Additionally, he has added oil marketing companies HPCL and BPCL to his India fund’s portfolio, accounting for 7-8% of the total holdings.

Equities make up 85% of Arora’s asset allocation, with 40% in Indian stocks and 45% in global equities. Most of his equity investments have been made through Helios’ own funds, both in India and globally. The weighted average returns of his portfolio were 37% in dollar terms in the past year.

Arora, known for his growth investing strategy, has recently included value stocks like HPCL and BPCL in his portfolio amid the government’s efforts towards PSU divestments. He remains bullish on the upcoming Union Budget post the Lok Sabha elections, expecting fiscal deficit reduction through large-scale PSU divestments.

In the global market, Arora’s fund focuses on the US technology sector, with a 35-40% weightage in US tech stocks. Despite the rally in US tech stocks, he plans to hold onto his positions, except for new flows, to avoid further run-ups in prices. Stock picks like Zomato in the Indian fund and Nvidia in the global fund have performed well, with significant returns in the past year.

Arora has also diversified his investments into gold, citing low interest rates as a reason for the shift. Holding physical gold and gold ounce currency, represented as XAU in the forex market, Arora has taken a stance on gold as an alternative investment avenue.