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Prashant Jain: HDFC MF s Prashant Jain is making a risky bet on a market anomaly

Jain, who was making a presentation on his fund, said time will be the best judge of whether these divergent valuations in the market are a new normal or not. Jain’s value-focused investing style has held him in good stead over the past nine months, as value stocks made a roaring comeback after investors, globally, shifted out of growth-oriented stocks in late 2020 concerned by the prospects of higher interest rates and high inflation. Further, a charged up global commodity cycle meant old economy stocks, which had become beaten-down in recent years, became among the biggest leaders of the bull market. Jain was an early entrant in many of these old economy stocks.

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