This top-performing Indian hedge fund says stocks have risen too fast

True Beacon, which invests only in large-cap stocks and is up about 21% this year, is adding shares of software exporters and pharmaceutical companies

A top-performing Indian hedge fund that was bold enough to load up local shares in the depth of the March selloff is now turning cautious on the country’s stock market after a stellar rebound.

True Beacon One, which manages about Rs 3 billion ($40 million) of Indian equities, has trimmed its bullish bets on stocks and is keeping 80% of its investments hedged, according to Nikhil Kamath, the co-founder and chief investment officer of the fund. The one-year-old fund has outperformed the NSE Nifty 50 Index by 29% this year, making it one of the best performers among local peers,