According to Teresa Barger, Demonetization is seen as a reform as it was done to boost formalization and financialization trends.

Cartica Capital believes earnings will recover going ahead and the fund is well placed over the long run and it has seen EPS growth in the fund has invested in.

While, valuations have been a concern the fund remains confident of return of earnings growth over the long term and the fund is well positioned for the long term.

According to her, one will need to watch out for global factors such as Oil, geopolitical issues (Saudi Arabia, Venezuela etc) among others.

Regards themes, the preference is for consumption based stocks and beyond it there are other sectors like and are looking are companies where management is top notch and has very high integrity.

Pharmaceuticals and IT won’t be top priority investments atleast in the last couple of years where regulatory risks have been high. Could look at some companies in the Logistics sector.

Some of the sunrise sectors according to Cartica Capital is likely to be Affordable Housing and Road building.

The fund in India has not invested in export stocks as competitive advantage for India was far more in local markets than in exports markets. Besides, the fund also believes that it wouldn’t be buying Indian stocks to play the US Markets.

Infrastructure push improvement, NPA resolutions and such reforms are likely to be positive for India and investments over the medium term.

Among financials, the fund has invested in RBK Bank and Chola Investment Finance where the financialization and rural theme have a large scope to play out.

The fund has about 1/3rd of the portfolio invested in India.