Care PMS Growth Plus Value


Key Portfolio Attributes

Inception Date: 19-Jul-2011

Number of Stocks : Max 20

Fund Manager Name: Jayant Mamania, Arpit Shah & Amit Doshi

Fund Manager Experience: Jayant Mamania : Total experience 20 years ; Arpit Shah : Total experience 12 years; Amit Doshi: Total experience 15 years

Fund Manager Qualification: Arpit Shah : Chartered Accountant; Amit Doshi: Chartered Accountant

Investment Objective

To buy equity of companies listed on Indian stock exchanges to generate long term returns

Investment Approach

Bottom-up, Stock specific approach

• Shortlisting of companies on ongoing basis (on any fundamental trigger) or during quarterly earnings season (after applying Care PMS proprietary quant screeners) for detailed analysis

• Extensive fundamental research undertaken on shortlisted stocks and their peer group to spot trend or turnaround in that segment or industry

• Take account of recent developments in that segment or industry and meet industry participants across the value chain and to confirm inferences

• Decision to add a company or to replace and existing company taken only after consensus among all three investment directors

• Detailed analysis about company’s strategies, management’s execution capabilities and on pedigree of management followed Q & A with management or investor relation

 

Portfolio Structuring

Portfolio structuring involves determining appropriate allocation of weight to individual stocks based on the risk profile of the investor. This is followed by re-assessment of weights and re-balancing strategically using our propriotary quant tools. Individual portfolios are constructed with mix of 5-7 different sectors and well diversified among 12-16 companies. Further, there are limits on individual stock and sector weightage.

 

Risk Management

•  Disproportionate Risk-Reward: A detailed analysis of probable downside corresponding to probable upside is done before adding it to the portfolio

• Diversify: While individual client portfolios that we manage are fairly concentrated. We do diversify portfolio companies into growth, turnaround and value buys

• No Model Portfolio: Individual portfolios are constructed based on the timing when funds are made available and what opportunities are present, as we are very cautious about the valuation at which we acquire equity of a company

• Continuous Monitoring: Real-time monitoring of any news or developments in portfolio companies. Quantitative review of individual portfolios as a part of portfolio re balancing exercise

 

Exit Process

• Partial Profit Booking– when there is price rise on account of euphoric environment not backed by fundamentals.

• Portfolio Re-balancing– when the weight of individual stocks or sector within the portfolio goes above limits, we may consider shaving off the weight of a certain company in the portfolio.

• Shift to better opportunities– research is a continuous process which result in new shortlisted companies. When an alternative with better prospects is found, an existing portfolio company may be replaced.

• Fundamental Deterioration– Exit is warranted when there is a change in fundamentals of the company due to which earnings expectation is revised downwards

• External / Macro Dynamics– Exit is warranted when there is a change in macros in which company operates due to which earnings expectation is revised downwards

• Price reaches fair value– When earnings grow to a level as envisaged and reach fair value post which earnings plateau.




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio5.5%3.4%8.0%5.7%48.8%37.6%9.1%-25.5%
BSE Smallcap5.9%8.6%7.5%6.4%41.4%31.7%12.4%-16.2%



Portfolio Holdings


Holding %
JK Paper Ltd 8.35
HIL Ltd 7.64
Tata Steel Ltd 7.19
Thirumalai Chemicals Ltd 7.19
LT Foods Ltd 7.14
Top 5 Equity Holdings 37.51

Sector Allocation


Holding %

Market Cap Allocation


Allocations %
Large Cap 16.0
Mid Cap 3.0
Small Cap 73.0
Cash 7.0


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 Care PMS PMS

What to expect from Care Growth Plus Value Strategy PMS?

Care PMS Growth Plus Value Strategy is based on fundamental analysis and is more stock specific approach. We try to identify companies which can grow business and earning in excess of 15% over 4-5 years and are not fairly valued at the time of purchase in order to get appreciation in form of EPS growth as well as PE Expansion. As the investments are more into smallcaps, an investors should expect higher returns over longer period with high volatility in short period.

Who should invest in Care Growth Plus Value Strategy PMS?

An investor with longer investment horizon (5-7 years) and ready to see volatility (drawdown of 30-40%) in short period can invest in our strategy. Investors who are doing goal based investments for their long term goals like child education, retirement planning, dream home, etc. can always allocate fund for this strategy which can deliver super normal returns over longer period.

Which is the best company through which an investor can invest in Care PMS Growth Plus Value?

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 Aug 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.




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