AlfAccurate Advisors India Opportunity Plan AAA IOP PMS


Key Attributes

Dr. Rajesh Kothari

Inception Date: 23 Nov 2009

Number of Stocks: 40-60

Founder, MD, and Portfolio Manager: Dr Rajesh Kothari

Portfolio Manager's Experience: Total Exp – 26 Years, Founded AAA in 2009

Portfolio Manager's Qualification: CWA and an MBA

Investment Objective

The objective of this strategy is to invest in listed companies with a combination of high growth stocks as well as value stocks. The primary focus is on capital protection with an aim to deliver attractive long term returns using disciplined, fundamental, research-driven approach.

Portfolio Strategy

Investment Universe

• Diversification across industries
• Diversification across M-cap with focus on liquidity:

• Min 40% in large cap INR275 bn+
• Not more than 10% in one stock
• Max 35% in one sector
• Max 50% in the top 10 stocks
• Minimum investments in 30 stocks

Flexible investment style: Growth as well as Value with focus on Margin of Safety

 

Staggered Approach

• Portfolio exposure increased over a period
• Not averse to raise cash

 

Exit Strategy

• Close eye on earnings growth drivers
• Close eye on valuations

• Continuous monitoring of risk

 

3M Stock Selection Approach

• Market Size– Size of the opportunity should be huge to generate significant investment returns

• Market Share– The company be consistently profitable and should be among the leading players in the industry

• Margin of Safety– The company should provide reasonable growth opportunity at reasonable Margin of Safety

Investment Process

  1. 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

 

  1. Analysis & Decision making Process

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

 

  1. 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

 

  1. 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.




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio-1.9%-1.9%-3.5%17.2%36.5%18.0%12.2%20.0%18.7%
BSE 500-0.6%-0.4%-1.4%21.0%37.6%16.9%14.0%14.9%12.2%



QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Infosys Ltd 6.02
ICICI Bank Ltd 5.19
HDFC Ltd 3.96
Bajaj Finance Ltd 3.42
HDFC Bank Ltd 3.03
Top 5 Equity Holdings 21.62

Sector Allocation


Holding %
Chemicals 8.98
Engineering 10.81
Software 11.54
Consumer 16.22
Banking & Finance 25.92

Market Cap Allocation


Allocations %
Large Cap 49.5
Mid Cap 25.2
Small Cap 23.2
Cash 2.1

Disclaimer

#Returns as of 30 Apr 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 22.



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