Little today, champions tomorrow

Key Attributes

Inception Date: 29 Aug 2019

Number of Stocks: 15

Founder & CEO: Saurabh Mukherjea

Portfolio Manager's Name: Ashvin Shetty

Portfolio Manager's Qualification: B.Com from NMIMS, Mumbai. CA & CFA.

Portfolio Manager's Experience: 10+ years in Equity Research. He led the coverage on automobile sector at Ambit Capital from 2010 to 2017. He was ranked in Starmine Analyst Awards 2013 and 2016 for his stock picking abilities during this stint. He thereafter worked as a senior analyst for Ambit’s mid and small-cap portfolio management services till November 2018.

Investment Objective

Identity small-cap companies (Market cap <US$500 Million or approx. 3500 Cr ) with excellent corporate governance and capital allocation track record and strong sustainable competitive advantages built around brands, business processes and strategic asset.

Investment Strategy

Thorough analysis based on two objective steps as mentioned below :

  • Objective analysis based on 12 accounting ratios covering income statement (revenue/ earnings manipulation), balance sheet (correct representation of assets/liabilities), cash pilferage and audit quality checks.
  • First rank stocks on each of the 12 ratios individually. These ranks then cumulated across parameters to give a final pecking order on accounting quality for stocks.

And, then handing picking companies from the filtered universe after interaction with industry players, competition, channel partners etc.

Investment Philosophy

The 3 attributes for selecting stocks in Little Champs remain the same as in Consistent Compounders strategy:

1) Clean accounting and good corporate governance;
2) Historical evidence of prudent capital allocation; and
3) High barriers to entry so that companies are able to sustainably generate return on capital higher than cost of capital.


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