ICICI Prudential PMS Contra Strategy


Key Portfolio Attributes

Anand Shah
Geetika Gupta

Inception Date: 14th September, 2018

Portfolio Managers: Anand Shah & Geetika Gupta

Portfolio Managers’ Experience:

Anand Shah- 20+ years

Geetika Gupta- 10+ years

Portfolio Managers’ Qualification:

Anand Shah- PGDM from IIM Lucknow

Geetika Gupta- B.Tech, Chemical Engineering from IIT Delhi and PGDM from IIM, Ahmedabad

Investment Objective

ICICI Prudential PMS Contra Strategy aims to provide long term capital appreciation and generate returns by investing in underperforming stocks or sectors, which are available at intrinsic valuations and are expected to perform well in the long run. It seeks to generate capital appreciation by investing predominantly in Equity & Equity Related Instruments through contrarian investing. For defensive consideration, the Strategy may invest in debt and money market mutual fund schemes.

ICICI Prudential PMS Contra Strategy aims to identify tomorrow’s leaders by picking businesses that are benefitting from both earnings growth and P/E rating.

Investment Philosophy

• A focused portfolio of investment ideas, agnostic to market capitalisations. ICICI Prudential PMS Contra Strategy aims to invest across market capitalisation.

• Optimal diversification across stocks, with the opportunity to be overweight vis-à-vis its benchmark, S&P BSE 200, on certain high conviction picks, to potentially generate higher alpha.

• In case of debt exposures, ICICI Prudential PMS Contra Strategy may invest in debt instruments through money market/liquid/short term mutual fund schemes of ICICI Prudential Mutual Fund.

• ICICI Prudential PMS Contra Strategy may not be restricted by any particular investment style and may opt for flexibility to select stocks across investment styles.

• ICICI Prudential PMS Contra Strategy may aim to use cash as a hedge against sharp declines in equity in an endeavour to protect the Strategy.

• ICICI Prudential PMS Contra Strategy aims to identify sectors or companies which are facing temporary headwinds

• ICICI Prudential PMS Contra Strategy aims to build a concentrated portfolio of high conviction ideas

Investment Framework

The core belief of ICICI Prudential PMS Contra Strategy is that Companies create wealth, not markets.

The investment framework of ICICI Prudential PMS Contra Strategy is to identify prominent businesses at reasonable valuations, which have competent management.

Prominent Businesses

• Company growing faster than industry &industry faster than market

• Qualitative assessment based on the concept of economic moats

• Foreseeable changes in business leading to a positive outcome

Reasonable Valuations

• Cash flow is central in our Investment Process about a company’s value

• Evaluation of margin of safety required according to the ‘moat’ and competence of management

• Better risk reward profile

Competent Management

• Focused on growth, improving margins &prudent capital allocation

• Competent managers with a credible track record

• Fair corporate governance standards, with aligned shareholder interests

Investment Strategy

As the name suggests, the core motive of ICICI Prudential PMS Contra Strategy is to follow a contrarian approach to investing. 

High Entry Barriers

• Businesses going through Unfavourable Business Cycle
• Competent players
• Survivors within the sectors

Industry Consolidation

• Industry challenges lead to reduction in players
• Distress exit of one, can lead to growth for another

Special Situations

• Mergers & Acquisitions
• Changes in subsidiary holdings
• Spin-offs in products or departments

Awards & Achievements

Across ICICI Prudential PMSs & AIFs

• In 2023, ICICI Prudential PMS Contra Strategy was awarded as the Best PMS across all categories, on a 1Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, ICICI Prudential Long Short Fund, a Cat III Long Short AIF, was awarded as the Best AIF in the Cat III Long Short category, on a 2Y Absolute Returns basis. 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
ICICI Prudential PMS Contra Strategy6.4%2.3%5.7%14.3%19.1%32.7%17.3%
BSE 500 TRI4.6%2.1%-1.1%4.2%12.3%25.5%--11.7%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
State Bank of India 7.76
ICICI Bank Ltd 7.34
Bharti Airtel Ltd 6.94
Bank Of Baroda 6.30
HDFC Bank Ltd 5.99
Top 5 Equity Holdings 34.33

Sector Allocation


Holding %
Banks 27.39
Ferrous Metals 13.21
Transport Services 11.85
Telecom - Services 9.21
Finance 6.37

Market Cap Allocation


Allocations %
Large Cap 58.4
Mid Cap 13.5
Small Cap 27.2
Cash 0.

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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Disclaimer

#Returns as of 30 Apr 2023. 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 23.


Do Not Simply Invest, Make Informed Decisions