SageOne Small And Micro Cap Portfolio


Alpha (1Y) Beta (1Y) Standard Deviation (1Y) % of +ve Months (SI)
4.24% 0.95 21.77% 72%

Key Portfolio Attributes

Mr. Samit Vartak

Inception Date: April 2019

Number of Stocks: 15

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 SageOne 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 SageOne Small and Micro Cap Portfolio is to outperform the benchmark indices by at least 5% (annualized) over an economic cycle.

SageOne 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

SageOne Portfolio approach 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 SageOne Small & Micro Cap PMS is on superior businesses and would not buy a weak business. SageOne Small & Micro Cap 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.

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

Investment Strategy

SageOne Small & Micro Cap (SSP) PMS is portfolio construction of 12 to 20 companies from 400th to 1200th company 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

Across Sage One PMSs & AIFs

• 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 Small Cap Portfolio (SSP)-3.1%-9.3%-9.4%-4.1%17.2%31.4%--26.2%
NSE Small Cap 100-3.5%-8.1%-4.5%-6.0%7.7%18.5%--9.6%



QRC Report Card *




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Portfolio Holdings


Holding %

Sector Allocation


Holding %

Market Cap Allocation


Allocations %
Large Cap 0.0
Mid Cap 16.3
Small Cap 75.8
Cash 7.9


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WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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From the Founders & Managers of SageOne Investment PMS

What to expect from SageOne Smallcap Portfolio PMS?

SSP is one of SageOne’s flagship strategy with an impeccable record of 40.2% CAGR returns since its inception in April, 2019.

  • The objective is to invest in high growth businesses with a potential to double earnings in 2-4 years and available at reasonable valuations.
  • Return ratios above 20% and debt-equity ratio under 0.5 are key attributes of SCP portfolio companies.
  • Aggressive growth plans led by high capex, product/geography expansion, and market share gains are the typical attributes of SSP companies.
  • The market-cap focus of SSP remains in the 400th to 1000th 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, SSP has been recently ranked no. 1 PMS 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 Small And Micro Cap Portfolio?

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 28 Feb 2023. 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 22.




Related Investments

SageOne Capital Core Portfolio PMS
SageOne Flagship Growth 2 Fund Category III AIF – Scheme II
SageOne Diversified Portfolio

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