The Kenneth Andrade-led Old Bridge Focused Fund has made a decisive portfolio shift by exiting the information technology sector entirely in February after selling its full stake in HCL Technologies. The move, disclosed in the fund’s latest monthly portfolio statement, comes amid sustained weakness in technology stocks and reflects a broader strategic repositioning toward sectors linked to domestic demand and industrial activity.

According to the scheme’s February portfolio disclosure, the fund offloaded approximately 10.9 lakh shares of HCL Technologies during the month. The exit marked the only complete divestment from the portfolio during the period but had a significant sectoral impact, effectively reducing the fund’s exposure to the IT services space to zero.

The exit from HCL Technologies follows earlier portfolio changes that had already indicated a cautious stance toward the sector. In December, the fund had exited Infosys while increasing its holding in HCL Technologies, which had accounted for about 7.67 percent of assets under management in January.

However, the February reshuffle reversed that positioning entirely. The technology stock also declined about 17 percent during the month, coinciding with a broader correction across IT stocks.

The shift is taking place against a challenging backdrop for technology companies globally. The Nifty IT index declined nearly 19.5 percent in February and has continued to remain under pressure in March. Over the past six months, the index has fallen around 17.6 percent. Valuations have adjusted as well, with the index currently trading at about 17.88 times one-year forward earnings compared with a 10-year average of roughly 22.5 times. These trends suggest that institutional investors are reassessing exposure to export-oriented technology services companies amid uncertainties in global tech spending.

Andrade has previously articulated a selective view on the sector, suggesting that only a limited number of companies are likely to benefit meaningfully from structural shifts such as automation and artificial intelligence adoption. That stance appears consistent with the fund’s decision to withdraw entirely from the sector rather than maintain selective exposure.

While the IT exit was the most notable move, the fund simultaneously deployed capital into other areas of the market. During February, the portfolio added a fresh position in Tata Motors Passenger Vehicles, purchasing around 16.3 lakh shares. The new holding now represents approximately 2.53 percent of the fund’s assets under management.

In addition to the new automobile exposure, the fund increased its holdings in several existing portfolio companies. The stake in Axis Bank rose to 9.1 lakh shares from about 7 lakh shares, bringing its portfolio weight to roughly 5.12 percent of assets under management. Holdings in Ramkrishna Forgings increased to around 15.3 lakh shares, representing about 3.43 percent of the portfolio.

The fund also strengthened its allocation to healthcare and pharmaceuticals. Exposure to Aurobindo Pharma increased to about 11.9 lakh shares, now accounting for approximately 5.88 percent of the fund’s assets. Another healthcare-linked addition came through Medi Assist Healthcare Services, where the holding rose to about 7.6 lakh shares.

Despite the adjustments, the portfolio continues to maintain a concentrated investment strategy with allocations across financial services, pharmaceuticals, metals, telecom, aviation, and industrial companies. Financial services remain the largest sector allocation, led by Shriram Finance, which is the fund’s single largest holding at about 9.15 percent of assets.

Pharmaceutical exposure is anchored by Aurobindo Pharma, while banking exposure is primarily through Axis Bank. The portfolio also includes metals and commodity companies such as Tata Steel, Hindustan Zinc, and Hindalco Industries. On the consumption and mobility side, the fund retains positions in Maruti Suzuki and InterGlobe Aviation.

As of February, the scheme manages approximately Rs 2,461 crore in assets. Cash and cash equivalents accounted for around 13 percent of the portfolio, suggesting that the fund is maintaining some liquidity while gradually reallocating capital across sectors.