SUNDARAM Emerging Leaders Fund

Mid & Small Cap Portfolio of companies expected to see huge market cap rise by 2025

Key Attributes

Inception Date: 1 June 2010

Number of Stocks: 20-25

Fund Manager Name: Mr Madanagopal Ramu

Fund Manager Experience: Total Exp – 13 Years, With Sundaram – 8 Years

Fund Manager Qualification: Cost Accountant and has a Management degree from BIM Trichy.

Investment Objective

To seek long term capital appreciation with investments in Mid-Cap companies

Portfolio Strategy

EASE Portfolio:

Emerging leaders – clean and high-quality management,

Asset light & high ROCE businesses,

Scalable companies: Mid-cap to large cap, small cap to mid-cap transitioning companies,

Excellent cash conversion from operations

Investment Philosophy

As the name goes S.E.L.F is a strategy identifying “Emerging Leaders”. It identifies corporate in the “Non Large Cap Universe” which can potentially become a Large Cap entities over a period of time. The strategy focuses on building a concentrated 20-25 stock portfolio and the endeavor is to invest in companies with structural themes like consumption, banking services and may also include cyclical themes like cement and chemicals.

3Q Quality Approach To Stock Selection

• Quality of Business – Pricing Power, Profitability, Growth, Brand Strength, Capital Intensity, Complexity of Business

• Quality of Management – Past Track Record, Management Bandwidth, Corporate Governance

• Quality of Financials – Capital Allocation, Leverage, Cash Flow Generation, Return on Capital

Investment Focus

• Sundaram Mid & Small Cap strength but yet differentiated with a concentrated portfolio

• Concentrated 20-30 stocks

• Stocks with less than > : Rs500bn market cap

• Identify stocks in the Mid & Small Cap space that are in early stages of their business cycle and could emerge as tomorrow’s large caps.

• India 2025 – Themes

  1. Consumer discretionary
  2. Services
  3. Chemicals
  4. Cement

Don’t Just Invest. Make an Informed Decision.