Sensing Trouble or whatever, some smart fund managers sold Satyam Computers. HDFC Tax Saver and HSBC Equity completely exited their positions in Satyam as on Dec-31st 2008. HDFc Long Term Advantage Fund reducedi ts esposure but didn’t completely exit Satyam in Dec-08. IDFC and Kotak fund managers also completely exitted Satyam in Dec-08.
However, HDFC Top 200 and HDFC Equity funds increased their exposure to Satyam [less than 2.5% of total assets] in the month of Dec-08. Both th funds are managed by Sr. fund Manager Prashant Jain. In the last 12 months his over aggressive investment bet on ICICI Bank has already led to the under performance of both of these funds compared to Reliance Growth Fund.
However, we need to take a macro view on the fund and the management before taking any extreme decision of switching like Dhirendra Kumar recommends. Here is Satyam’s complete holding picture by Domestic Mutual Funds.[PDF]
Update on Feb-5-2009:
HDFC Mutual Fund has sold 50 Lakh Shares of Satyam Computers on Jan-2nd. So the loss from Satyam is negligible in the funds we recommend. Economic Times of Feb-05 carries an article on who all sold Satyam before Jan-7th when the stock crashed.