ASK Indian Entrepreneurship Portfolio (IEP)

Key Attributes

Inception Date: 25 January 2010

Number of Stocks: 19

Executive Director, ASK Group: Mr Bharat Shah

Business Head & CIO: Mr Prateek Agrawal

Portfolio Manager's Name: Mr Chetan Thacker

Portfolio Manager's Experience: Total Exp – 12 Years, With ASK – 11 Years

Portfolio Manager's Qualification: Post Graduate in Management from Mumbai University.

Investment Objective

The fund is designed to invest in entrepreneurially driven and/or family-owned businesses; listed on the Indian stock markets, for compounding gains over the medium to long term.

The concept invests in Indian entrepreneurs with adequate ‘Skin in the Game’ who have demonstrated high standards of governance, vision, execution, wisdom, capital allocation, and capital distribution skills. They run businesses that are amongst the highest long-term earnings growth.

Portfolio Strategy

– IEP follows a very rigorous, disciplined, strong filters-based investment approach, while embracing value-creating traits (more about it later)
– Invests into quality entrepreneurs with
– Vision and dynamism
– High standards of governance
– Wisdom
– Demonstrated capital allocation and capital distribution skills
– Superior quality achieves the preservation of value and high growth is sought to achieve expansion of value. It looks for 20% compounded growth from each business and targets over 25% growth from the portfolio. To fund this growth, the business ROCE should be over 25% so that growth can be funded and there are surpluses for dividend.
– Promoter with adequate skin in the game ensures alignment of management and shareholder interests, hence, invests into businesses with an identifiable business house at helm with minimum 25% stake.
– The portfolio seeks to identify such businesses at reasonable discount to value and stay invested for a length of time and make money as EPS compounds

Investment Philosophy

ASK’s Advantage“Investing”, as Buffett says, “is simple but not easy”. It is the implementation of the simple things consistently and with discipline during all market conditions, that requires character, which makes all the critical difference. Core advantage lies in the disciplined and consistent execution of these ‘simple’ things and doing them well.Core philosophy at ASK Investment Managers revolves around two key aspects:

  1. First achieve capital protection (over time) and
  2. Follow it with capital appreciation.

Overarching Investing Philosophy and Principles

• Greater certainty of earnings v/s. mere quantum of earnings growth
• Superior and consistent quality of earnings v/s. mere quantum of earnings growth
• High quality at a reasonable price v/s. inferior quality at an arithmetically ‘cheap’ price

QUALITY, RISK, CONSISTENCY ANALYSIS

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