ASK Investment Managers – Growth Portfolio


ASK Investment Managers – Growth Portfolio

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 2001-01-29
Number of Stocks 28
Alpha (1Y) -5.52%
Beta (1Y) 0.95

About ASK Investment Managers PMS

ASK Investment Managers Limited (ASK IM) stands as a prominent asset and wealth management company, with its primary focus on serving the High Net Worth Individual (HNI) and Ultra High Net Worth Individual (UHNI) segments within the Indian market. ASKIM holds the distinction of being among the first companies to secure a Portfolio Management Services license in India and is presently one of the leading providers of Discretionary Equity Portfolio Management Services. Their investment focus is exclusively directed towards listed Indian equities, serving clients domiciled in India as well as offshore investors through segregated accounts and commingled funds.

Key People

Bharat Shah
Mr. Bharat Shah Executive Director
Mr. Nimesh Mehta
Mr. Nimesh Mehta Director & Country Head- Sales & Products

Investment Objective

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.

Investment Attributes

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

Investment Philosophy

The core philosophy of ASK Growth PMS at ASK Investment Managers centers on two fundamental principles: prioritizing capital protection over time, followed by capital appreciation. Their investment strategy involves selecting Indian equities associated with high-quality businesses led by exceptional management teams, exhibiting sustained long-term growth potential at reasonable and equitable valuations.

Underpinning their investing philosophy are the following overarching principles:

  1. Emphasis on greater certainty of earnings as opposed to solely focusing on the magnitude of earnings growth.
  2. A preference for superior and consistent quality of earnings rather than just the quantity of earnings growth.
  3. Prioritizing high quality at a reasonable price rather than settling for inferior quality at a superficially ‘cheap’ price.

Their investment approach is characterized by:

  1. Valuing the intrinsic worth of assets rather than merely assessing the current market price.
  2. A disciplined strategy of investing in outstanding businesses.
  3. Building a portfolio that capitalizes on compounding opportunities.
  4. Purchasing ‘growth’ businesses at ‘value’ prices.

Their approach revolves around selecting high-quality businesses at fair valuations, eschewing the acquisition of mediocre enterprises at low prices. Additionally, their Key Investment Attributes contribute to shaping investment strategies with well-defined objectives and distinct characteristics.

Investment Strategy

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.

Investment Approach

• 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

Awards & Achievements

• 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.

Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
ASK Growth Portfolio1.80%2.20%15.10%34.00%10.30%12.10%14.30%17.20%18.90%
BSE 500 TRI0.90%4.50%17.40%40.20%17.90%19.30%17.40%15.90%15.70%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Bajaj Finance Ltd 6.12
APL Apollo Tubes Ltd 6.09
Patanjali Foods Limited 5.54
AU Small Finance Bank Ltd 5.46
Reliance Industries Ltd 5.38
Solar Industries India Ltd 4.33
HDFC Bank Ltd 4.19
Bajaj Finserv Ltd 4.13
Varun Beverages Ltd 4.11
Titan Company Ltd 4.09
Indusind Bank Ltd 4.09
State Bank Of India 3.92
Navin Fluorine International Ltd 3.87
ICICI Bank Ltd 3.80
Divis Laboratories Ltd 3.73
P I Industries Ltd 3.45
Page Industries Ltd 3.09
Larsen & Toubro Ltd 3.08
Bharti Airtel Ltd 3.08
Bharat Electronics Ltd 3.04
KEI Industries Ltd 2.82
Berger Paints India Ltd 2.80
Indian Oil Corporation Ltd 2.28
Bharti Airtel Ltd PP 2.09
JSW Infrastructure Limited 2.03
Ambuja Cements Ltd 1.52
Gujarat Gas Ltd 0.05

Sector Allocation


Holding %
NBFC 12.90
Retail 10.90
FMCG 10.80
Chemical 9.90
Oil & Gas 8.10
Consumer Durables 7.10
Insurance 6.70
Pipes 5.80

Market Cap Allocation


Allocations %
Large Cap 56.60
Mid Cap 29.50
Small Cap 9.30
Cash 4.

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 ASK PMS

What to expect from ASK Growth PMS?

The objective of ASK Emerging Opportunities Portfolio (EOP) is to build a concentrated portfolio of businesses across range of market capitalization (large, mid, and small cap), representing quality and superior long-term compounding potential.

• Concentrated strategy of carefully identified businesses across range of market capitalization
• Highly focused portfolio of high-quality and high-growth businesses that are positioned for outstanding compounding in the long-term
• Buy and hold strategy with minimal churn
• Buying businesses with a large competitive advantage in industries with a large size of opportunity, that offer superior growth over long period of time

Who should invest in ASK Growth PMS?

Our current clients include High Networth Individuals (HNIs), Ultra HNIs, Institutions, Pension Funds, Endowments, Sovereign Wealth Funds, Family offices, multi managers, etc. Clients who have an appetite to invest in Indian equities with a long-term investment horizon are ideally suited for investments in this portfolio.

Which is the best company through which an investor can invest in ASK Investment Managers – Growth 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 Mar 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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