HDFC Bank to be part of Chris Wood’s global long-only portfolio as stake in Nvidia, TSMC cut

HDFC Bank will command a 4% weightage in the global long-only portfolio.

On December 30 last year, Chris Wood had reintroduced HDFC Bank, India’s largest private lender, into his Asia ex-Japan long-only portfolio with a 4% weightage.

At the same time, the weightage of HDFC Bank in the India long-only portfolio was increased by one percentage points.

Chris Wood also spoke about the meltdown seen in big tech names like Nvidia, saying that GREED & fear has had no exposure to these “hyperscaler” names in the global portfolio. However, they are part of the AI “picks and shovels” theme since April 2023.

“But with the DeepSeek development GREED & fear will, ahead of the pending Chinese New Year, reduce holdings in the AI picks and shovels plays in the various portfolios precisely because of the potentially dramatic implications of the DeepSeek news,” Chris Wood said in his note.

In light of the investment in HDFC Bank, along with those in Alibaba and Brazil’s Bank Itau (Itau Unibanco), which will also have a 4% weightage each in the global long-only portfolio, the investment in ASML and SK Hynix will be removed.

Chris Wood will also trim his investments in Nvidia, which fell 17% overnight and lost nearly $600 billion in market capitalisation, by two percentage points and in TSMC, the world’s largest semiconductor manufacturer, by one percentage point.

Shares of HDFC Bank have not had a good start to 2025, despite reporting results that were in-line with expectations. The stock is down 8.6% so far in the month of January and had ended 1.2% lower on Monday as well.