The Indian mutual fund industry has witnessed a surge of new entrants in recent years, but few have arrived with the pedigree of WhiteOak Capital. Founded by veteran investor Prashant Khemka and led by former Motilal Oswal Mutual Fund CEO Aashish Somaiyaa, this asset management firm is making waves with its sector-specific investment approach. As markets oscillate between post-pandemic recovery and global economic uncertainty, WhiteOak’s thematic funds and quality-focused philosophy offer investors a compelling roadmap for navigating India’s evolving equity landscape.
Sector-Specific Bets in Volatile Markets
WhiteOak’s recent launch of two thematic funds—Banking & Financial Services and Pharma & Healthcare—reads like a playbook for India’s next growth phase. The Banking Fund casts a wide net across traditional banks, NBFCs, and fintech disruptors, reflecting Somaiyaa’s conviction that financial services will drive market expansion. This isn’t just blind optimism: India’s credit penetration remains at 56% of GDP compared to China’s 182%, suggesting massive runway. Meanwhile, their Pharma Fund taps into structural tailwinds—an aging population, rising chronic diseases, and India’s position as the “pharmacy of the world.” Both funds exemplify WhiteOak’s strategy of “shooting where the rabbit will be,” anticipating sector rotations before they become consensus trades.
The Quality Quotient in Portfolio Construction
What sets WhiteOak apart isn’t just sector selection, but its laser focus on quality metrics. While value stocks cyclically outperform, Somaiyaa’s eight-year tenure at Motilal Oswal demonstrated how quality compounds wealth—a lesson crystallized during market downturns. Their research shows IT, pharma, and consumer stocks with high ROCE and pricing power delivered 18% annualized returns over a decade versus 12% for value picks. This philosophy informs their rebalancing advice: when cyclicals recently underperformed, WhiteOak systematically rotated into resilient healthcare names. Their portfolio managers liken this to “trading a Ferrari for a tank”—prioritizing durability over horsepower during volatility.
Navigating the Global-Local Conundrum
WhiteOak’s balanced perspective acknowledges external shocks—a rarity among India’s domestically focused AMCs. Somaiyaa warns that US Fed policy and recession risks could trigger 10-15% corrections in Indian equities within six months. Yet their playbook differs from defensive peers: rather than raising cash, they advocate barbelling portfolios with export-oriented pharma stocks (to hedge rupee risk) alongside domestic financials (to capture India’s credit growth). This dual-engine approach reflects lessons from Somaiyaa’s 2008 crisis experience—when purely defensive strategies missed early-cycle rebounds.
As passive investing gains ground, WhiteOak makes an active manager’s case through tactical precision. Their thematic funds act as sector scalpels rather than blunt instruments, while quality filters prevent chasing transient trends. For investors fatigued by index hugging, WhiteOak offers something refreshing: a philosophy that embraces volatility rather than fearing it. In markets where most see bubbles or busts, they’re carving a third path—one where disciplined sector bets and quality rigor might just redefine Indian alpha generation. The real test comes when the next downturn hits, but for now, WhiteOak’s cocktail of specialization and selectivity deserves a spot on every investor’s watchlist.
