Shares of CAMS dropped about 2 per cent to Rs 2198.15 on Friday, while AU Small Finance Bank was trading about 2 per cent up at Rs 778.85 during the session. Chris Wood, the Global Head of Equity Strategy of Jefferies, has added AU Small Finance Bank to his India portfolio, with a 3 per cent weightage. Just a week earlier, the global stock guru had added food delivery platform Zomato to his India portfolio with a 4 per cent weight. AU Small Finance Bank will be part of GREED & Fear's long-only India portfolio. He has replaced the private lender by slashing the investment in Computer Age Management Services (CAMS). Subsequently, the lending sector has a total weightage of 35 per cent in Wood's portfolio after the addition of AU Small Finance Bank. Shares of CAMS dropped about 2 per cent to Rs 2198.15 on Friday, while AU Small Finance Bank was trading about 2 per cent up at Rs 778.85 during the session. AU Small Finance Bank stock has delivered healthy returns of over 40 per cent over the past two months, but we see a robust growth opportunity for the bank in the long term and believe the stock can be a compounder if the bank continues to execute well, near-term growth opportunities are fairly priced in after the recent outperformance, said Motilal Oswal. "Loan growth is likely to remain steady. While the management has shown strong execution prowess and we believe the long-term growth story remains intact, we find the current risk-reward unattractive after the recent stock performance. We, thus, downgrade the rating to Neutral with a target price of Rs 830," it added. HDFC Securities and Dalal & Broacha had 'sell' ratings on AU Small Finance Bank in April after its Q4 earnings with a target price of Rs 580 and Rs 569, respectively. However, Axis Securities and ICICI Securities have 'buy' ratings on the stock but their targets have been met since. GREED & Fear observed that banks and finance companies, known as the lending sectors, account for nearly 36 per cent of the Nifty 50 index, compared to 24 percent for the MSCI India index. "This means that from the standpoint of domestic fund managers who measure their performance against the Nifty, GREED & fear is underweight the lending sectors in long-only India portfolio, even though it is overweight in the Asia ex-Japan and global long-only portfolio," the note said. The 'long' portfolio means shares with buy recommendations, while the 'short' portfolio is for selling the shares and buying them later, on corrections, to make profits. India's lending sector accounts for 32 per cent of the India long-only portfolio, 19 per cent of the Asia ex-Japan long-only portfolio and 14 per cent of the global portfolio of Jefferies. Wood had earlier highlighted that India's asset management story is the most promising domestic asset management story globally. However, removing Computer Age Management Services within a few days after this came as a shocker to the markets. "It might seem odd to remove CAMS which is a long-term play on the development of the asset management industry," he said. Still, GREED & Fear has discovered this week that the mutual fund industry faces regulatory headwinds which, if implemented, will increasingly damage the profits of what is a clear success story, he added. ICICI Securities and Motilal Oswal had a 'buy' rating on Computer Age Management Services in early May with a target price of Rs 2,413 and Rs 2,600, respectively. However, HDFC Securities had suggested 'reducing' the stock with a target price of Rs 2,000 on it.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)