SageOne Capital Core Portfolio PMS

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 2009-04-01
Number of Stocks 14
Alpha (1Y) -2.93%
Beta (1Y) 0.96

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 Core PMS portfolio is to outperform the benchmark indices by at least 5% (annualized) over an economic cycle. Sage One Core 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 Core PMS looks 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 of Sage One Core Portfolio is on superior businesses and would not buy a weak business irrespective of its price. Sage One Core PMS 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.

Sage One PMS follows a “zero” tolerance policy, believes, “if we avoid the losers, the winners will take care of themselves.”

Investment Strategy

The investment strategy of Sage One Core PMS (SCP) is to identify sustainably high performing businesses and conduct continuous evaluation and monitoring to find businesses that have high earnings structural growth with attractive valuation. The Sage One Core Portfolio is a Mid & Small cap portfolio construction of 12 to 20 companies from 101 to 600th stock as per market cap.

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
SageOne Investment Core Portfolio0.31%11.06%21.90%61.38%21.14%23.67%26.49%25.16%27.74%
BSE 500 TRI1.66%11.93%18.86%39.47%19.81%19.47%19.00%16.71%15.26%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %

Sector Allocation


Holding %
Finance 22.00
Building Materials 19.00
Capital Goods 12.00
Real Estate 11.00
Specialty Chemicals 6.00

Market Cap Allocation


Allocations %
Large Cap 16
Mid Cap 36
Small Cap 38
Cash 10

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

imageBook a call with our PMS AIF Specialists

From the Founders & Managers of SageOne Investment PMS

What to expect from SageOne Core Portfolio PMS?

SCP is SageOne’s flagship strategy with an impeccable record of ~29% CAGR returns since its inception in April, 2012.

  • The objective is to invest in high growth businesses with a potential to double earnings in 3-4 years and available at reasonable valuations.
  • Return ratios above 20% and debt-equity ratio under 0.5 are key attributes of SCP portfolio companies.
  • Since these attributes are difficult to find in large-cap businesses (either low growth or rich valuations), the market-cap focus remains in the 100th to 600th companies by market-cap rank.
  • Among the ~80 businesses bought so far in SageOne portfolios, more than 85% have delivered positive returns (and 65% have delivered returns above 25%).

Among all the accolades and recognitions, SCP has been recently ranked among the top 3 PMSs by PMS AIF World in their 2022 QRC ranking report.

Who should invest in this PMS?

Investors should have a long-term investment horizon (5+ years) with above-average risk-taking ability. While our portfolio management strategies significantly diversify stock-specific risks, clients are still exposed to the volatility of mid & small cap investing.

Which is the best company through which an investor can invest in SageOne Capital Core Portfolio PMS?

We recommend PMS AIF WORLD, because, it is one unique platform that offers real knowledge driven investing with their highly meaningful data, reports, and content that is written very well. PMS AIF World is a team of highly articulate, educated, and experienced people.

Disclaimer

#Returns as of 29 Feb 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 Dec 23.


Do Not Simply Invest, Make Informed Decisions

Subscribe To Our Newsletter

Stay informed with our latest updates. Subscribe to our newsletter for exclusive content, news, and valuable insights.