Alfaccurate Advisors Budding Beasts Portfolio

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 1-Jan-2021
Number of Stocks 57
Alpha (1Y) -8.51%
Beta (1Y) 0.59

About Alfaccurate Advisors PMS Portfolio

Tough situations need tougher solutions. That’s the underlying philosophy for every portfolio that is managed by AAA. Given the dynamic business ecosystem, their approach to managing a portfolio is robust and, proactive rather than reactive. Their expertise ensures convenience and competitive returns as advisors work hard to generate returns for the investors based on vast domain knowledge and a process-driven approach. An integrated, long-term and analysis-based approach is applied to every client portfolio.

Key People

Dr. Rajesh Kothari
Dr. Rajesh Kothari Founder & MD, AlfAccurate Advisors

Investment Objective

AAA Budding Beasts Portfolio (formerly AAA Emerging Giants PMS) plan is a portfolio of 30-60 companies that are mid/small caps with strong corporate governance and high growth potential with an investment horizon of 3-5 years.

The investment objective of AlfAccurate Advisors’ Budding Beasts Portfolio (formerly AAA Emerging Giants PMS) is to protect client’s capital & generate wealth.

Investment Strategy

The investment strategy for AAA Budding Beasts Portfolio (formerly AAA Emerging Giants PMS) is to:

• Follow an India investment strategy with strong emphasize on superior and sustainable growth

• Focus on companies with strong balance sheet and high return on capital employed

• Focus on companies which are emerging giants

Investment Attributes

Resilient Growth

The fundamental point here is to make sure that investing is focused on long-term wealth creation that is resilient to market ups & downs.

AlfAccurate Advisors invest in companies with superior earnings growth, driven by sustainable competitive advantage. They believe that in the long term, the market is a mirror of earnings growth and hence, consistent earnings growth is the primary drive of intrinsic value and stock price appreciation; thus, they focus on companies that have proven management teams, operating in a good growth market with a strong product portfolio.

Their strong leadership, focus on building a healthy, balanced portfolio of market-competing and market-creating strategic moves, innovation and agility gives companies a durable competitive advantage. That translates in producing resilient earnings growth, which when compounded, can deliver tremendous value to shareholders.

Resilient Fundamentals

The fundamental point here is to make sure that investing is biased towards companies with strong fundamentals that are resilient to economic shocks.

No one can influence the macroeconomic environment, but one must aim to ensure that the stocks held are the most resilient we can find. Guided by their 3M approach, AlfAccurate Advisors’ investment team focuses on selecting companies that have demonstrated strong business performance as evidenced by superior Return on Equity (ROE) and steady cash flows over the long term.

The aim is to invest in companies that possess sustainable competitive advantages, creating value as a profitable business that can, over time, provide attractive returns with less risk than the overall market.

Resilient Risk Management

The intent here is to ride the waves of volatility in a balanced manner.

Operational, technology and environmental stressors are nothing new in the investment world. What we are now seeing, however, is a higher frequency of failure, in tandem with the greater likelihood of a catastrophic incident. In response to these threats, the role of a risk-adjusted investment strategy as a line of defence requires a bedrock of radical resilience.

The key focus on diversification and a disciplined exit strategy helps them navigate uncharted waters such that we inherently mitigate market risks. Their strategy to respond quickly to change, helps to protect investors’ capital from market shocks and generate wealth over the long-term.

Investment Philosophy

The investment philosophy at AlfAccurate Advisors is to make high-conviction investments in companies with strong moats and high growth potential that offer solid long-term, risk-adjusted returns for investors.

AAA or AlfAccurate Advisor’s proprietary 3M approach has delivered superior risk-adjusted returns year after year and resulted in various multi-baggers such as Hitachi, Motherson Sumi and Whirlpool over the past 11 years. They invest in companies that have proven management, a strong balance sheet, superior earnings growth and exceptional corporate governance. Their radically resilient strategy is in accordance with this 3M approach of Market Size, Market Share, and Margin of Safety.

• Market Size:

Market size determines the size of the opportunity. They prefer companies that are targeting a large market size to generate exponential returns.

• Market Share:

They buy companies that are the leaders in their sector as they are the best positioned to navigate the upturn and downturn of the economy.

• Margin of Safety:

Price is what you pay. Value is what you get. They buy the companies which are available at reasonable valuations.

Investment Process

AAA or AlfAccurate Advisors follow a 4-step investment process:

Stock Identification

• Identify emerging trends and opportunities from a universe of 600 companies
• Filter approach – using variety of valuation parameters
• Focus on earnings, free cash flow, ROE, long term growth and profitability trends

Analysis & Decision making Process

• Initial screening
• Corporate meeting and detailed due diligence
• Identify sustainable competitive advantage

Portfolio Construction Monitoring & Nurturing

• Combination of Top Down and Bottom Up approach with a benchmark agnostic strategy to achieve Long term investment objective
• Continuous portfolio monitoring ensures prudent risk management
• Regular interaction to provide strategic inputs to strengthen systems, controls and CG in line with best practices

Exiting & Realizing Value

• Constant evaluation of valuation metrics to decide optimum return potential
• Intrinsic value V/s Current Market Price to evaluate Margin of Safety
• Change in underlying assumptions of investment thesis.

AAA invests in companies that have proven management with superior earnings growth, driven by sustainable competitive advantage.

AlfAccurate Advisors believe that in the long term, the market is a mirror of earnings growth and hence, consistent earnings growth is the primary driver of intrinsic value and stock price appreciation. That translates into producing resilient earnings growth, which when compounded, can deliver wealth creation for investors.

AAA’s key focus on diversification and a disciplined exit strategy help them navigate uncharted waters such that we inherently mitigate market risks.

Their strategy is to respond quickly to change, help to protect your capital from market shocks and generate wealth over the long-term.

The team at AlfAccurate Advisors is committed to using a disciplined, fundamental, research-driven approach to identify well managed, shareholder-friendly companies with sound business models where they see a strong likelihood of continuing profitability and positive shareholder returns.

Their unique 4-Step Investment Process is predicated on 3M stock selection, prudent risk management and a disciplined exit strategy.

AlfAccurate Advisors' PMS Positioning

AlfAccurate Advisors is driven by a strong commitment to protect capital and create wealth for its clientele. It places paramount importance on meeting investors’ expectations, recognizing that generating superior returns is only one part of the equation. Investors also seek peace of mind amid market volatility. Hence, it aims to deliver consistent performance, instilling trust and confidence in its clients by safeguarding their hard-earned money”. The firm’s founders, including Rajesh Kothari, are actively involved as fund managers, ensuring consistency and stability in its investment approach. With Rajesh Kothari’s 27-plus years of experience in the Indian capital markets and a combined team experience of 75-plus years in Indian equity markets,

1. AlfAccurate Advisors possesses valuable insights into business cycles, sectors’ growth patterns, and varying valuation cycles.

2. AlfAccurate Advisors’ investment philosophy centers on ‘QuAgility’, a term coining ‘Quality plus Investment plus Agility’. This principle ensures a meticulous selection of market-leading businesses supported by robust management, governance, and financials.

3. Additionally, AlfAccurate Advisors maintains a disciplined exit strategy, ensuring a balance between valuation and growth considerations. This approach aligns with its overarching mission to protect capital while creating wealth for investors. Looking to the future, the firm envisions becoming the world’s most admired investment advisor, guided by a mission to deliver long-term superior risk-adjusted returns while offering a wow experience to all stakeholders.

4. AlfAccurate Advisors remains committed to offering a concise range of quality products that genuinely meet investors’ needs and aspirations.

Awards & Achievements

 

• In 2023, AlfAccurate Advisors India Opportunities Portfolio or AAA IOP PMS was awarded Rank #2 as the Best PMS across all categories, on a 10Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, AlfAccurate Advisors India Opportunities Portfolio or AAA IOP PMS was awarded Rank #3 as the Best PMS across all categories, on a 10Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• AlfAccurate Advisors have won the Best PMS Provider – India Award by APAC Insider Business Awards.

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
AlfAccurate Advisors Budding Beasts3.18%15.70%19.54%52.68%26.97%33.25%--32.66%
BSE 500 TRI1.92%17.88%16.20%33.42%16.46%21.87%--20.53%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Safari Industries India Limited 3.20
Cholamandalam Investment And Finance Company Ltd 3.10
TRENT Ltd 3.10
Eureka Forbes Ltd 3.00
Hitachi Energy India Ltd 2.90
Top 5 Equity Holdings 15.30

Sector Allocation


Holding %
Banking & Finance 30.40
Consumer 17.60
Pharma 11.20
Auto 9.90
Engineering 8.60

Market Cap Allocation


Allocations %
Large Cap 8.30
Mid Cap 23.90
Small Cap 61.50
Cash 6.30

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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From the Founders & Managers of AlfAccurate Advisors PMS

What to expect from AlfAccurate Advisors’ India Emerging Giants PMS?

  • It is a portfolio of 30-50 companies that are emerging giants with strong corporate governance and high growth potential with an investment horizon of 3-5 years.
  • It will significantly benefit from the ensuing economic recovery
  • It invests in the Sectoral leaders with large profit size but available in mid & small cap space, providing an attractive opportunity.
  • The plan launched in January 2021 and delivered 34.3% vs Benchmark at 25.9% during the last one year.

A high conviction and quality approach:

  • Based on our proprietary 3M Investment Approach, we invest in companies that have proven management, a strong balance sheet, superior earnings growth, and stellar corporate governance. We believe that by investing in companies with resilient fundamentals and sustainable competitive advantage while taking a long-term investment approach, we can preserve capital and provide stability across market cycles.
  • Our radically resilient strategy is in accordance with our 3M approach of Market Size, Market Share, and Margin of Safety.

Who should invest in AlfAccurate Advisors’ India Emerging Giants PMS?

Investors who wish to own a portfolio of companies that have a potential to generate significant economic value in the long term but presently available in mid and small market cap category.

Investment Horizon: Ideal for investment with a time horizon of preferably 5 years or above.

Which is the best company through which an investor can invest in Alfaccurate Advisors Budding Beasts Portfolio?

We recommend PMS AIF WORLD, because, it is one unique platform that offers real knowledge driven investing with their highly meaningful data, reports, and content that is written very well. PMS AIF World is a team of highly articulate, educated, and experienced people.

Disclaimer

#Returns as of 31 Jan 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.


Do Not Simply Invest, Make Informed Decisions

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