2POINT2 Long Term Value


Key Portfolio Attributes

Mr Amit Mantri

Inception Date: 19 July 2016

Number of Stocks: 15

Co-Founder: Amit Mantri

Portfolio Manager’s Name: Amit Mantri & Savi Jain

Portfolio Manager’s Experience: Amit Mantri Total Exp – 9 Years, Savi Jain Total Exp – 10 Years. Both Co-founded 2Point2 Capital in 2016.

Portfolio Manager’s Qualification: Amit Mantri is a B.Tech from IIT Kharagpur, an MBA from IIM Bangalore and a CFA charterholder. Savi Jain is also a B.Tech from IIT Kharagpur and a CFA charterholder.

Investment Objective

Aim is to invest taking concentrated bets for the long term in high quality publicly listed Indian companies at reasonable valuations. Primary Objective is to protect capital followed by a goal to generate returns that exceed the equity index return over the long term.

Portfolio Strategy

• Concentrated (Max 15 businesses, Max allocation to each is 10% at cost).

• Market-cap Agnostic (Invest wherever there is value. Present portfolio is bent towards mid/small cap).

• Sector Agnostic (Avoid real estate, commodity, cor infra).

• Single Portfolio (Only 1 Portfolio/Scheme, Focused).

Investment Philosophy

Followers of Benjamin Graham, Warren Buffett and Charlie Munger. Investment philosophy is guided by the value investing principle of buying a security at a discount to its intrinsic value. In words of Founders, “when we invest in a stock, we buy the business and not the stock. We remain agnostic to the daily fluctuating stock price as long as we continue to believe in the business. In fact, we view market volatility as a friend that allows us to buy securities at a discount or sell at a premium to intrinsic value”

Investments are selected based on the following criteria:

 

Competitive Moat

• 2Point2 seeks to invest in businesses which have a strong competitive moat or are gradually widening their moat.
• The competitive moats which 2point2 finds attractive are those driven by strong brands, distribution strength, inherent cost advantages, technology/IP and high switching costs. These businesses demonstrate high capital efficiency and are typically cash flow positive.
• 2Point2 does not invest in businesses whose moats are primarily driven by regulations and political linkages.

 

Margin of Safety 

• Valuation of businesses is absolute and not relative. Seeks to maintain valuation discipline by investing only at a discount to intrinsic value resulting in a margin of safety.
• This may entail staying in cash in periods of unreasonable euphoria in the markets and investing in periods of extreme distress.
• 2Point2 steadfastly follows the principle of ‘Be fearful when others are greedy and greedy when others are fearful’.

 

Corporate Governance

• 2Point2 Believes that stable long-term returns are generated by partnering managements which treat minority shareholders as equal partners.
• 2Point2 stays away from businesses with weak corporate governance practices and only invests in businesses led by ethical management teams.

 

Sectors

• Prefers to invest in sectors that have long term growth opportunities.
• Avoids investing in highly regulated sectors, and/or sectors that are linked significantly to commodity prices, ‘fad’ driven sectors and sectors exposed to technological disruption.
• It also avoids sectors that over a long period only generate accounting profits and not cash flows.

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
2Point2 Capital Long Term Value Fund-0.30%1.30%11.70%50.20%31.90%23.00%22.90%21.30%
BSE 500 TRI1.70%11.90%18.90%39.50%19.80%19.50%19.00%15.90%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %

Sector Allocation


Holding %
NBFC 19.82
Bank 15.31
Diversified Holding Company 11.26
Consumer Discretionary 11.91
Insurance 9.10
Healthcare 7.46
IT 4.63
Auto Components 1.07
Miscellaneous 17.77
Cash 1.67

Market Cap Allocation


Allocations %
Large Cap 3.01
Mid Cap 18.49
Small Cap 66.00
Cash 12.50

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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Disclaimer

#Returns as of 29 Feb 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Dec 23.


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Do Not Simply Invest, Make Informed Decisions

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