SageOne Diversified Portfolio

About SageOne Investment Managers

SageOne Investment Managers is one of the respectable investment management firm in India. Sage stands for Sustainable, Accountable, Growth and Efficient businesses. Sage one portfolio management approach is to invest in high growth businesses owned by clean and competent management, companies that have build sustainable competitive advantage. Sage one was incepted by Mr. Samit Vartak with the sole objective to build serious wealth for their clients (UHNIs, family offices etc.) Sage One investments follow a primary focus of superior businesses and is not too much focused on its price.

Key People

Mr. Samit Vartak
Mr. Samit Vartak Founding Partner and CIO

Investment Objective

The objective of Sage One Investment Managers is to build and maintain a portfolio in high conviction growth ideas available at prices at or below fair value.

The objective of Sage One Diversified Portfolio is to outperform the benchmark indices by at least 5% (annualized) over an economic cycle.

Sage One Diversified PMS targets this objective by looking at high growth businesses with a long-term competitive advantage that have a clean and competent management, sustainable competitive advantage.

Competitive Advantage

Proven Track Record

• Maximising risk-adjusted returns for Alpha generation
• Consistent track record of identifying multibaggers
• Timely exits

Experienced Investment Team

• 70+ cumulative years of relationships across industries and supply chains verifications
• Understanding of emerging economic trends, businesses and their competitiveness
• Strong network enabling robust ground checks

Robust Investment Process

• Bottom-up research
• Scientific screening process for filtering right stocks & sectors
• Quantitative & qualitative thorough research

Disciplined Risk Management

• Focus on downside volatility
• Holistic checks on macro and micro factors that affect operations of the businesses
• Detailed Analysis of Company Fundamentals

Investment Philosophy

Sage One Diversified Portfolio looks for niche business leaders who are expected to grow earnings > 20% (CAGR) over our investment horizon of 3-5 years driven by industry growth and market share gain from competition and especially do significantly better than the competition during stressed environment.

Investment Strategy

The investment strategy of Sage One Diversified Portfolio is to invest in businesses with high earnings and structural growth with attractive valuations.

Investment Parameters

Sage One believes in an in-depth, fundamental bottom-up research into companies and emerging trends; to identify and invest in companies with long-term structural growth, high profitability & quality management.

Green Flags

• 20% + compounded earnings growth
• Market share gains
• ROCE & ROE > 20%
• High Cash Flow from Operations
• Sustainable margins
• Low leverage
• Better ROCE on incremental capital expenditure
• Favorable ESG incorporation

  • Red Flags
  • • Loose accounting policies
    • Poor capital allocation
    • Questionable founder history
    • Related-party transactions
    • Complex corporate structure (multiple subsidiaries, cross holdings)
    • Corporate governance issues

Risk Management Framework

Prudent Stock Selection

• Financial & Business Analysis
• Internal Forensic Model

Sectoral & Stock Limits

• Maximum 25% exposure to one sector
• Maximum 20% exposure to one business group

Timely Rebalancing

• Strengthen winners, cut out losers
• Active calls on portfolio liquidity levels

Active Monitoring

• Channel checks across portfolio companies & competition
• Active entry & exit, based on valuations & business dynamics

Awards & Achievements

• In 2023, Sage One Small Cap Portfolio (SSP) was awarded Rank #1 as the Best PMS in the Mid & Small Cap Category, on a 3Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2022, Sage One Core Portfolio (SCP) was awarded Rank #1 as the Best PMS in the Mid & Small Cap Category, on a 3Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2022, Sage One Small & Micro Cap Portfolio was awarded the Winner in the Best PMS in the Mid & Small Cap Category, on a 2Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, Sage One Core Portfolio (SCP) was awarded Rank #3 as the Best PMS in the Mid & Small Cap Category, on a 3Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, Sage One Small Cap Portfolio (SSP) was awarded the winner in the Best Newcomer PMS Category, on 1Y of Absolute 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

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

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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 Feb 21.


Do Not Simply Invest, Make Informed Decisions

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