An analysis of mutual fund (MF) shareholding trends in BSE smallcap stocks over the past four quarters shows a notable shift in stance. In the March 2026 quarter, MFs trimmed holdings in 73 stocks, reversing a two-quarter phase of accumulation: from June 2025 to September 2025, and again from September 2025 to December 2025.About 25 stocks in the universe have delivered double-digit gains over the past year. Nine stocks have risen more than 50%, with some rallying as much as 375%. However, the broader picture shows sharp divergence, with 12 stocks declining between 35-65% over the same period.MFs are typically considered informed investors, with allocation decisions driven by deep research and long-term fundamentals. While sustained buying often signals confidence, a reversal after consecutive quarters of accumulation is worth tracking closely. (Data source: ACE Equity) Turning Tide