Quant Mutual Fund says its portfolio strategy is currently focused on identifying opportunities in under-owned, under-researched, undervalued and neglected segments of the market, where it believes the potential for alpha generation remains higher.According to the fund house, its latest portfolio positioning reflects a proactive approach aimed at capitalising on attractive valuations across a wide range of sectors. The fund house also noted that while concerns in previous years were centred around excessive ownership by foreign institutional investors, attention is now shifting towards pockets of the market where domestic institutional ownership has become crowded.Also Read | Multicap vs flexicap mutual funds: Which is better placed amid market volatility?As part of its sectoral positioning, Quant Mutual Fund remains underweight on manufacturing companies, citing uncertainty around input costs and supply-chain dynamics. At the same time, it has marginally increased exposure to technology stocks as the space has come in neglected territory.The fund house continues to maintain a positive outlook on sectors such as energy, large-scale infrastructure, select non-banking financial companies (NBFCs), insurance, asset management companies (AMCs), select private sector banks, hotels, pharmaceuticals, telecom and data-centre-related businesses.The investment philosophy, according to the fund house, is centred on finding opportunities in areas of the market that are receiving relatively less investor attention, rather than chasing heavily owned or crowded trades. Quant Mutual Fund believes such neglected pockets often offer better valuation comfort and the potential for superior long-term risk-adjusted returns.The fund house also believes that global capital is underestimating the trade agreement of India and US, which will be rewarded in the longer term. Because India’s productivity is maximized (Export services) and financial costs are optimized (Forex reserves) better than with any other nation or region in the world, and India will be a big beneficiary of improved trade terms with the US. Thus, amid heightened global concerns of an economic slowdown, India continues to stand out as a relative outlier. The relatively low interest rate environment and easing liquidity will further support lending and banking activity, according to the monthly release by the fund house.The monthly release also highlighted that the rise in crude prices, rise in input costs in general and heightened challenges in logistics will have an impact on earnings in the near-term and the markets are expected to consolidate over a period of time, before resuming the next leg of up move. At the broader level, the large-cap oriented indices will do well to grow along with the macro-economic expansion of the country. Thus, it will be the micro, small and mid-caps spaces, which will drive alpha generation The fund house also said that for the last two months, we have been calling out loud & clear that the worst is behind us & we should capitalize on the opportunity, and not capitulate at the bottom of the cycle. The AI financial race reached unprecedented heights as Anthropic closed a massive $ 30bn funding round, pushing its valuation past $ 900bn and intensifying its rivalry with OpenAI. This massive valuation was mirrored by an industrial arms race for hardware infrastructure. Also Read | International funds top return charts, but overseas investment limits persist. Should you continue SIPs or explore alternatives? In parallel, energy giant NextEra acquired Dominion Energy for $ 67bn in the largest utility merger in U.S. history, a deal explicitly executed to power the massive energy grid required for next generation AI data centers. The fund house has completed 30 years of existence in the market and has reached Rs 1 lakh crore of AUM and has one crore folios as of May 27, 2026.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@timesinternet.in alongwith your age, risk profile, and Twitter handle.