The midcap gauge on Friday halted two weeks of gains as data on May 31 showed the economy grew last quarter at a slower pace than economists expected
Investor confidence was also shaken by the crisis faced by shadow banks after the default of IL&FS Group in September
This past week, the bad news roared back, with troubled Dewan Housing Finance Corp.’s rating cut to default.
Sambre said he used the soft patch for mid-cap stocks to consolidate his fund by reducing the number of holdings to 50 from as high as 70. The fund exited nonbank finance stocks, while adding insurers and consumer-focused firms that are likely to be less impacted from the slowdown, he said. The fund is also betting on private-sector banks, drugmakers and producers of specialty chemicals and auto parts. Sambre also said there’s less room for disappointment as market multiples remain at the higher end.