ASK Investment Managers – Growth Portfolio

ASK Growth Portfolio is one of the industry’s first PMS Investment Approach launched way back in Jan 2001.

ASK Growth Portfolio is designed to provide medium to long-term returns, by seeking to buy growth at value prices from a diversified portfolio of Indian equities with favorable long term prospects. This portfolio is an ideal investment for investors who would like to participate in India’s growth opportunity.

The two core objectives of this ASK Growth Portfolio are: Capital Preservation and Capital Appreciation over a period of time. This is achieved through long-term investments in high-quality companies with strong growth prospects.

The investment attributes of ASK Growth Portfolio are:

Size of the Opportunity

• Size of pond v/s size of fish
• Dominance
• Resilience
• Liquidity

Earnings Growth

• Quantum
• Consistency
• Durability
• Predating (Early v/s Later)
• Compounding power

Quality of the business

• High quality of business (Superior RoCE)
• Strong moat. Impregnability
• Sustainability
• Key pivot of strong wealth creation

Value

• Favorable Price-Value Gap
• Margin of safety

ASK Growth Portfolio aims to build a portfolio of investments predominantly into businesses representing a large size of opportunity. The investment approach of 20 businesses is into high quality businesses with superior management pedigree- Businesses with high ROCE (> 25%) with superior future earnings growth (> 15%) at the time of 1st purchase of stock. Apart from this, the four key investment attributes are: Size of the opportunity, Quality of business, Earnings Growth, and Value. Good Management is an attribute which is a given constant.

• Universe of Top 500 as per market capitalization

• Profit Before Tax (PBT) above INR 200 crs (*at the time of 1st purchase of the stock) for trailing 4 quarters

• Subjective evaluation of management quality (integrity, vision,
execution, capital allocation skills and capital distribution)

• Finally, an investment approach emerges of 20 businesses, representing an optimal blend of the overall characteristics, and adequate diversity, with a minimum Margin of Safety of
15%.

• Rigorous filters of minimum of 25% Return on Capital Employed (capital efficiency) and minimum of 15% Earnings Growth over the next 3 to 5 years

• In 2023, ASK Indian Entrepreneur Portfolio or ASK IEP 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.

• In 2021, ASK Indian Entrepreneur Portfolio or ASK IEP 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, ASK Indian Entrepreneur Portfolio or ASK IEP PMS was awarded Rank #2 as the Best PMS across all categories, on a 5Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.