What to expect from Abakkus All Cap Approach PMS?

Abakkus Asset Manager LLP is an alpha focused asset manager investing in Indian Equities. Founded in 2018 by Mr. Sunil Singhania with a vision to make Abakkus, one of India’s most revered and top performing asset managers. Over the last 4 years, Abakkus has launched funds under the Category III AIF and the PMS platform. AMC today manages ~ Rs 9,000 crores of assets.

 

All Cap Approach portfolio is a Benchmark agnostic diversified portfolio adhering to proprietary “MEETS” investment framework. It focuses on bottom-up investment ideas with focus on stocks which can double their earnings in next 4-5 years. Portfolio typically will have 35-50% allocation towards large caps and rest is in broader markets. Typically, focus area of the portfolio in broader market is in companies that are between Rs 5,000 crs to Rs 35,000 crs range.

 

Portfolio looks at decent earnings growth of atleast mid-teens, while not overpaying in terms of valuations. Owing to this, typically you will not find the richly valued quality or over-hyped names in the portfolio as most of these names trade at an significant premium to market levels and are priced to perfection.

 

Within large cap our focus is on investing in companies with earnings visibility and slightly contrarian to industry peers while our mid cap exposure is typically into companies which are 2nd or 3rd player but known player in their segment of operations and that have sustainable business with over 15% ROEs.

Who should invest in this PMS?

Those investors seeking for differentiated portfolio can invest in this strategy with horizon of 4-5 years. Portfolio has a blend of large caps to focus on stability during volatile times as well as decent broader market exposure to focus on alpha generation. The portfolio manager’s endeavour is to invest judicially rather than just by allocation basis which has helped in generating risk adjusted returns in the past.