PGIM India's 112 Crore Fund Achieves 22% Return by Betting on CDMO Stocks
A Rs 112 crore healthcare fund generated a 22% return in one year. Senior fund manager Anandha Padmanabhan attributes this alpha to exposure on contract development and manufacturing organisations.
PGIM India's Rs 112 crore Healthcare Fund delivered a 22% return over the past year, significantly outperforming its benchmark category and the Nifty Healthcare TRI. Senior fund manager Anandha Padmanabhan states that superior stock selection combined with concentrated exposure to faster-growing segments drove these results. The strategy specifically increased allocation to contract development and manufacturing organisations (CDMO), specialty pharma, and select healthcare service companies. These sectors remain under-represented in the broader healthcare index but showed stronger performance relative to peers. Management identified companies with clear earnings visibility and strong return on capital employed as key holdings. This bottom-up approach focused on firms with differentiated capabilities rather than broad sector indexing.
