ICICI Prudential PMS Value Strategy


Key Portfolio Attributes

Anand Shah

Suraj Nanda

Inception Date: Sep 2019

Number of Stocks : 32

Portfolio Managers: Anand Shah & Suraj Nanda

Portfolio Managers’ Experience:

Anand Shah- 20+ years

Suraj Nanda- 10+ years

Portfolio Managers’ Qualification:

Anand Shah- PGDM from IIM Lucknow

Suraj Nanda- PGDM from SP Jain Institute of Management, Mumbai and Bachelor in Electronics, from Jadavpur University, West Bengal.

Investment Objective

ICICI Prudential PMS Value Strategy aims to follow a value investment style and intends to offer a diversified portfolio of stocks that have a high potential but are quoting at a discount to their fair/intrinsic value.

Portfolio Strategy

The core investment philosophy of value investing is based on the belief that stocks cannot continue to quote at values that are significantly below their fair values over the long term. At some point in time, the markets are likely to recognize the extent of undervaluation of these companies. The same could lead to a rerating/appreciation in the company’s stock price.

There are various reasons why stocks tend to quote at low valuations. Some of these include:

• An irrational market sentiment that drives down the price of a stock to a level lower than justified by fundamentals. This could occur as an overreaction to negative news or as result of market pessimism on corporate/industry fundamentals. Markets also often tend to ignore certain stocks/sectors that appear to have low growth or non-exciting stories.

 

• Valuations not factoring in all aspects of the companies earning potential: Companies may have certain hidden assets on their books or assets whose actual value may not be factored in by the markets. This could include surplus land, equity holdings, cash on balance sheets, trademarks etc.

The markets are also at times slow to factor in company developments such as operational or financial restructuring, entry in to new markets, capacity expansions, introduction of new products, change in management etc. that could potentially add significant value to the networth of the business. During cyclical downturns, a number of companies are often valued based on bottom cycle earnings, which can look very attractive as the industry cycle improves.

The Portfolio Manager aims to find a good business at a reasonable price and not a mediocre business at a bargain price. The Portfolio Manager endeavors to invest in securities with:

• Favourable long-term prospects;
• Effective management;
• Scalable businesses; Sustainable competitive edge; and
• Available at an attractive/reasonable price

 

The Strategy aims to follow a “buy and hold” strategy in order to fully capitalise on the true underlying value of the business potential which gets “unlocked” over a period of time. However, the portfolio may be actively managed to take advantage of certain market trends, with an endeavour to enhance returns.




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio7.7%13.6%9.9%7.4%30.5%20.4%-16.5%
Nifty 2004.4%8.5%7.1%5.1%26.9%18.6%-13.1%



QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
ICICI Bank Ltd 6.77
Bharti Airtel Ltd 5.90
State Bank of India 5.85
Bank Of Baroda 5.48
The Great Eastern Shipping Company Ltd 5.40
Top 5 Equity Holdings 29.40

Sector Allocation


Holding %
Finance 8.02
Software 8.18
Industrial Products 9.18
Ferrous Metals 10.16
Banks 13.39

Market Cap Allocation


Allocations %
Large Cap 63.3
Mid Cap 19.0
Small Cap 17.7
Cash 0.0


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

*QRC Report Card data is updated quarterly. Current data is as of Jun 22.




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