According to Rushabh Sheth of Karma Capital, the media sector will present “some of the greatest opportunities” with large, increasing consumer spending across a variety of formats, including digital, gaming and the metaverse.

Media was hit hard by the pandemic-driven shutdowns as ads and subscriptions stalled, and is now at the “bottom of the cycle,” but that could change quickly, according to the chief investment officer and co-founder of Karma Capital, which as the largest holding company.

“We are at a turning point in terms of the cycle and seeing significant consolidation, which means that the (media) companies, which will be in the top three or four, will be significant beneficiaries of this delta in the consumer spending that you will see it in the next three to five years,” Sheth told BloombergQuint’s Niraj Shah.

Founded in 2005, Karma Capital manages Rs 4,500 crore in funds, most of which come from offshore institutional investors. Her portfolio “is a mix of all kinds of market caps and sectors” and consists of approximately 30% large caps, 40% mid caps and 30% small caps.

Sheth described the fund’s investment philosophy as “bottom-up investing,” which focuses on long-term strategy and stock analysis such as earnings and products, but downplays the importance of macroeconomic factors such as industry or market cycles.

“We are benchmark… and market capitalization agnostic,” said Sheth, who previously served as Chief Investment Officer for equities at Kotak Mahindra Mutual Fund. “Our current strategy, which has the bulk of the assets, is an all-cap strategy. We look for opportunities in the landscape.”

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