ASK Indian Entrepreneur Portfolio – IEP PMS


ASK Indian Entrepreneur Portfolio – IEP PMS

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 2010-01-25
Number of Stocks 29
Alpha (1Y) -6.66%
Beta (1Y) 0.89

About ASK Investment Managers PMS

ASK Group is a renowned financial services group and a leading industry player in wealth and investment management, catering to some of the most affluent families in India. Started in 1983, it is known for strong research-based investment management, asset management, private equity, wealth advisory and multi-family office businesses.

Key People

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

Investment Objective

ASK Indian Entrepreneur Portfolio or ASK IEP PMS 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.

ASK Indian Entrepreneur Portfolio or ASK IEP PMS 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.

The two core objectives of this ASK Indian Entrepreneur Portfolio or ASK IEP PMS 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 Indian Entrepreneur Portfolio or ASK IEP PMS 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 Strategy

ASK IEP PMS 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

ASK IEP looks for superior quality which it believed is achieved through the preservation of value and high growth is sought to achieve expansion of value.

ASK IEP PMS 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.

ASK IEP PMS core is promoters with adequate skin in the game. This ensures alignment of management and shareholder interests, hence, ASK IEP PMS invests into businesses with an identifiable business house at helm with minimum 25% stake.

ASK India’s Entrepreneurial PMS 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

Investment Approach

• Universe of Top 500 as per market capitalization

• Filter companies that have > 25% promoter / family holding (except in very rare and fit cases) [Universe of entrepreneur and/or family-owned business = 306 cos.]

• Condition of minimum PBT of INR 100 Cr (USD 14 mn) (at the time of 1st investment)

• Quality of business (capital efficiency) – minimum ROCE of 25%

• Subjective evaluation on management quality, their integrity, vision, past track record, execution, capital allocations and distribution skills, corporate governance standards, and so on

• Two more filters for selection of stocks a) Minimum 20 to 25%* earnings growth over the next 3 to 5 years without capital dilution and b) Price-Value gap (margin of safety) of 20%

• The businesses that remain after passing through the above filters, become a part of the ASK Indian Entrepreneur Portfolio or the ASK IEP PMS

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 Indian Entrepreneurship Portfolio (IEP)2.60%5.30%14.20%27.00%7.90%12.30%14.80%20.50%17.40%
BSE 500 TRI3.40%6.10%25.00%38.60%20.10%20.40%18.20%16.30%13.40%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Reliance Industries Ltd 5.88
Bajaj Finserv Ltd 5.74
Cholamandalam Investment and Finance Co. Ltd 5.69
APL Apollo Tubes Ltd 5.23
Bharti Airtel Ltd 4.98
Bajaj Finance Ltd 4.96
Torrent Pharmaceuticals Ltd 4.87
Interglobe Aviation Ltd 4.84
Tata Consultancy Services Ltd 4.59
Patanjali Foods Limited 4.24
Astral Poly Technik Ltd 4.24
P I Industries Ltd 4.08
Dr Reddys Laboratories Ltd 4.01
AU Small Finance Bank Ltd 3.76
Sona BLW Precision Forgings Ltd 3.73
Indusind Bank Ltd 3.19
Polycab India Ltd 3.06
Titan Company Ltd 3.05
TVS Motor Company Ltd 2.95
Divis Laboratories Ltd 2.46
Sun Pharmaceutical Industries Ltd 2.37
Bharti Airtel Ltd PP 2.24
JSW Infrastructure Limited 2.09
KEI Industries Ltd 2.01
Avenue Supermarts Ltd 1.88
Asian Paints Ltd 1.43
Metropolis Healthcare Ltd 1.09
Havells India Ltd 1.06

Sector Allocation


Holding %
NBFC 12.00
Retail 10.40
Banks 9.50
Pharma 8.30
Consumer Durables 7.10
Pipes 6.90
Insurance 6.50
Agri Chemicals 5.50

Market Cap Allocation


Allocations %
Large Cap 69.60
Mid Cap 28.70
Small Cap 1.10
Cash 0.5

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 Indian Entrepreneur Portfolio (ASK IEP) PMS?

ASK Indian Entrepreneur Portfolio (ASK IEP) invests in entrepreneurially driven and/or family-owned businesses; listed on the Indian stock markets, for compounding gains over the medium to long term. ASK IEP is one of the largest PMS Investment Approach in the industry with a consistent track record of more than 11 years. Our core philosophy at ASK Investment Managers revolves around two key aspects: first achieve capital protection (over time) and then follow it with capital appreciation. This approach has helped ASK IEP to deliver superior alpha over its benchmark. Portfolio invests into ASK 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.

Who should invest in ASK Indian Entrepreneur Portfolio (ASK IEP) 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 ASK IEP.

Which is the best company through which an investor can invest in ASK Indian Entrepreneur Portfolio – IEP PMS?

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 30 Apr 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 Mar 24.


Do Not Simply Invest, Make Informed Decisions

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