Chris Wood's Portfolio Overhaul: Reliance, Zomato, MakeMyTrip, DLF Gain Weight

Chris Wood, Global Head of Equity Strategy at Jefferies, has recently revealed significant changes to his long-only portfolios, reflecting a strategic shift in focus. In his weekly investor note, GREED & fear, the seasoned market expert detailed a reshuffling aimed at increasing exposure to domestic real estate and internet stocks while reinforcing investments in blue-chip Reliance Industries.

According to Wood, the weightage of Mukesh Ambani-led Reliance Industries shares in Jefferies' India long-only portfolio will be raised by two percentage points. This adjustment will be executed by trimming the weight of two leading blue-chip lenders, HDFC Bank and SBI, each by one percentage point, highlighting Wood's confidence in Reliance Industries' growth trajectory amid evolving market conditions.

Furthermore, Wood has restructured his Asia ex-Japan long-only portfolio by removing his investment in Godrej Properties while simultaneously increasing the investment in Macrotech Developers, promoters of the Lodha brand, from one per cent to 4 per cent. This reflects his preference for companies demonstrating strong fundamentals and growth potential in the real estate sector.

"An investment in another Indian property company DLF Limited will be introduced with a 3 per cent weight. An investment in Indian online travel company MakeMyTrip will be introduced with a 4 per cent weight by removing the investment in Axis Bank. The investment in Zomato will be increased by one percentage point by reducing the weighting in TSMC," Wood wrote in GREED & fear.

On the global long-only equity portfolio front, Wood has also decided to add shares of MakeMyTrip with a weightage of four per cent. This inclusion comes at the expense of a complete exit from Mumbai-based private lender Axis Bank Ltd., signaling a greater focus on digital and travel-related businesses.

Moreover, the Jefferies strategist has opted to increase the weightage of the latest Nifty 50 entrant, Zomato, by one percentage point. Over the past six months, Zomato shares have witnessed a significant correction, plummeting over 25 per cent due to heightened competitive pressures and margin constraints. Wood's decision suggests a belief in the long-term potential of the food-tech giant despite its near-term challenges.

Beyond India-focused changes, Wood also provided insights into the global investment climate. He noted that the US market remains relatively expensive, with deteriorating earnings growth at a time when Europe, China, and even Japan are experiencing positive earnings revisions. Additionally, he addressed the recent confirmation of auto tariffs set to be implemented on April 2, stating, "(The) 25 percent tariff is higher than expected. The implications are clearly bearish for an auto industry already facing an existential crisis, and particularly negative for Japan."

Wood's portfolio adjustments reflect a strategic reallocation of capital to sectors and geographies with promising growth prospects, reaffirming his analytical approach to navigating evolving market dynamics.