High earnings structural growth with attractive valuation

Key Attributes

Inception Date: April 2009 (2009-2012 was prop)

Number of Stocks: 12-20

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 objective of this concentrated portfolio is to outperform the benchmark indices by at least 5% (annualized) over an economic cycle. This is targetted by looking at high growth businesses with a long-term competitive advantage that have a clean and competent management.

Investment Philosophy

Look for niche business leaders who are expected to grow earnings > 20% (CAGR) over the 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. The primary focus is on superior businesses and would not buy a weak business irrespective of its price. The portfolio looks to invest in businesses that have a sustainable competitive advantage, i.e. ROCE and ROE of at least 20% that has been achieved without much leverage.

Having a “zero” tolerance policy, they believe, “if we avoid the losers, the winners will take care of themselves.”

Portfolio Strategy

The investment strategy is to to identify sustainably high performing businesses and conduct continuous evaluation and monitoring to find businesses that have high earnings structural growth with attractive valuation.

QUALITY, RISK, CONSISTENCY ANALYSIS

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