SageOne Flagship Growth 2 Fund Category III AIF – Scheme II


Key Portfolio Attributes

Mr. Samit Vartak

Fund Category: Category III AIF

Structure: Closed Ended Cat III Alternative Investment Fund

Founding Partner, CIO, and Portfolio Manager: Mr. Samit Vartak

Portfolio Manager’s Experience: 25 years (last 12 years as fund manager)

Portfolio Manager’s Qualification: MBA (USA), CFA (USA), and Bachelors of Engineering with Honours

Investment Objective

The investment objective of SageOne Flagship Growth 2 Fund Category III AIF – Scheme II is to build and maintain a portfolio in high conviction growth ideas available at prices at or below fair value.

SageOne AIF 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

The investment philosophy of SageOne Flagship Growth 2 Fund Category III AIF – Scheme II is as follows:

• Businesses that offer minimum 20% compounded earnings growth at individual level and 25% at the portfolio level
• Businesses that gain market share which contributes significant portion of their earnings growth
• Businesses that are strong and profitable with ROE > 20% to fund this growth internally
• Businesses with incremental ROE that is higher than existing ROE and which generally result in increasing margins and valuation multiples
• Most efficient players in industries – leaders or expected to be leaders due to their superior strategy and positioning

Investment Parameters

SageOne 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

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  • 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.

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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Do Not Simply Invest, Make Informed Decisions