MC Inside Edge: Remus in AK-47’s crosshairs, old timer scores big with Idea, HNIs cling to Indus Towers but bail from SAIL

Vodafone Idea shares continue to crawl higher, never mind the increased equity base and the challenges in growing its customer base. And that has resulted in a killing for this old timer on Dalal Street who began his career in Big Bull’s team in the 90s. Old Timer later worked closely with Big Bull 2 in the 2000s before striking out on his own as an investor in small caps. Now a major player in the pre-IPO and unlisted spaces, Old Timer is said to have taken a massive position in Idea even before the rights issue was announced, and also convinced many of his acolytes into loading up on the stock. The bet has paid off handsomely.

Indus creed

HNIs, including the Silent Investor, are still holding on their positions in Indus Tower, now that the outlook on the telecom sector as a whole has turned bullish. Some HNIs added to their positions during the recent block deal in which Vodafone Plc sold its stake. With Indus Tower part of the MSCI Index, HNIs are hoping that by keeping the stock price higher, they will be able to force more passively managed funds to buy into the stock.

Wind out of SAIL

HNIs have trimmed their exposure to the SAIL, even though the outlook for steel companies appears much better than what it was till some months back. Concentrated outstanding positions in the derivatives segment, which used to be around 33-35 percent, has now fallen to less than 10 percent. Coking coal prices have eased and domestic demand is strong, but SAIL has not been able to make the most of it. The Desi Soros’s fund was a big buyer of the stock in May, Other than that, it has been mostly arbitrage funds with sizeable positions in the stock. For a rerating, the stock needs fund managers to be convinced about SAIL and steel, and not merely an arbitrage opportunity.