Portfolio Type: Portfolio of large and growing companies with promotors significant skin in the game
Inception Date: 25 January 2010
Number of Stocks: 19
Fund Manager Name: Sumit Jain
Fund Manager Experience: Total Exp – 12 Years
With ASK – 11 Years
Fund Manager Qualification: Post Graduate in Management from Mumbai University.
Investment Objective: The concept invests in Indian entrepreneurs with adequate ‘Skin in the Game’ who have demonstrated high standards of governance, vision, execution, wisdom, capital allocation, and capital distribution skills. They run businesses that are amongst the highest long-term earnings growth.
1) Identify large and growing business opportunities with competitive advantage that are significant sized (min Rs. 100cr of PBT)
2) The quality of the business should be good to be able to fund strong growth through internal cash generation . So, it looks for 20% compounded growth from each business and targets over 25% growth from the portfolio
3) To fund this growth, the business ROCE should be over 25% so that growth can be funded and there are surpluses for dividend
4) The management should have the drive and have skin in the game to deliver compounded growth period after period (uncompromised corporate governance is a must). Hence, invest into businesses with an identifiable business house at helm with minimum 25% stake.
5) We seek to identify such businesses at reasonable discount to value and stay invested for a length of time and make money as EPS compounds