Why Old Bridge's Kenneth Andrade is avoiding IT despite attractive valuations

Kenneth Andrade, founder and CIO of Old Bridge Mutual Fund, expects earnings growth to revive to double digits by end of this financial year, driven partly by rupee depreciation.

Old Bridge is underweight banks, lending institutions, and parts of the insurance sector, and has no exposure to IT.

Andrade is bullish on pharmaceuticals and automobiles, favoring companies with stable domestic cash flows and international expansion.

He avoids IT despite attractive valuations due to lack of earnings visibility from disruption by automation and rapid technological change.

He sees crude as the biggest market risk.