Stallion Asset Core Fund Portfolio

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 22-10-2018
Number of Stocks 29
Alpha (1Y) 2.61%
Beta (1Y) 0.66

About Stallion Asset

Stallion Asset Pvt Limited operates as a distinguished financial services firm that holds registration with the Securities and Exchange Board of India (SEBI) under the categories of Portfolio Management (INP000006129) and Research Analyst (INH000007270).

Stallion Asset is synonymous with growth investing, and its approach is characterized by a meticulous framework designed to identify companies capable of consistently surpassing India’s GDP growth. The firm’s investment objectives are intricately woven into the financial goals of its clients, aiming to safeguard and expand their wealth. This commitment to client success is underpinned by bespoke investment solutions, each underpinned by comprehensive research and in-depth analysis.

Since inception, Stallion’s steadfast commitment to value creation, combined with a unique investment framework and shared objectives, has fostered a high level of trust among clients who have come to rely on the firm’s expertise and dedication to mutual financial growth.

Key People

Mr. Amit Jeswani
Mr. Amit Jeswani Founder & CIO

Investment Objective

Stallion Asset has only one PMS. The strategy name is Stallion Asset Core portfolio and it aims to create wealth by generating highest possible alpha for investors. Stallion PMS’ Founder, Mr. Amit Jeswani, believes that every bull run has leaders, and the leader of the previous bull run might not lead the next bull run and has a knack to find leaders for every bull runs.

Stallion Asset is a growth-oriented portfolio management company and the endeavour of Stallion PMS is to invest in the leader of bull run over every 1-3 year period. Leaders in bulls runs are created by strong earnings momentum. The Stallion Asset Core PMS aims to invest in companies that exhibit sustainable growth in earnings of close to 20% over the next 1-3 years.

The Stallion PMS has consistently performed and has been winning Awards for last 3 years (in 2020, 2021 and 2022) organised by us in association with IIM-A based on the format of risk adjusted returns.

Investment Philosophy

Stallion PMS core is its unique Philosophy of catching large trends in the market. Stallion PMS is not interested in 10-20% up moves; instead look at buying companies that can give its clients multiple times (multibagger) returns.

Portfolio Construct

Stallion Core portfolio has a consistent strategy of buying companies that fit the stringent criteria of Growth at a Reasonable Prices. The Stallion PMS follows 4-sector focused approach with a ‘Buy & Rotate’ Strategy. Stallion Asset PMS is a Multi cap PMS and Stallion Asset follows growth investing. Stallion PMS, prefers stocks that have hit 52 week highs rather than those that have hit 52 week lows.

The Stallion PMS portfolio construct is such that 40-60% weight is on Core Stocks, 40-60% weight is on Trends, and remaining is on Special Situations.

To put it in other words, Stallion PMS invests in 2 styles- one is to invest 40-60% in Proven Monopolies, and second, is to invest 40-60% in Emerging Monopolies.

Investment Strategy

Stallion Asset PMS focuses on the following 4 Ms:

Market Leadership

There is nothing worse than competition in business, Monopoly is the only condition of every very successful business.

Every Business starts with Solving a Problem! Every Big Business succeeds sustainably with making sure that it’sthe only one who can solve that problem.

Management

Two Key Roles – Capital Allocation & Capital Distribution.

Focus on Speed, Scale and Sustainability.

A Bad Person is a bad person & he will never make a good deal. This world is filled with Good people to do Business with. The Fair Value of a Promoter with no Integrity is 0.

Market Opportunity

The Size of Opportunity is the foundation on which large wealth creation lies, simply put it’s the size and duration of growth (of Earnings) of a business.

Stallion invests in companies that address a market which is large enough to allow our investment to grow 4-5x without needing to compete.

Margin of Safety

Value of the firm equals to steady-state value + future value creation + excess cash – debt.

Investment Framework

Green Flags – Focus on following 4 sectors:

• Consumer
• Financials
• Consumer Tech
• Pharma

Red Flags – Avoid:

• Commodities
• Lead Bank Play
• Bad promoter valuation arbitrage
• Government businesses – G2B or B2B

Stallion's PMS Positioning

Stallion Asset is a growth-oriented portfolio management company and the endeavour of Stallion PMS is to invest in the leader of bull run over every 1–3-year period. Leaders in bull runs are created by strong earnings momentum and Stallion Asset Core PMS aims to invest in companies that exhibit sustainable growth in earnings of close to 20% over the next 1-3 years. Stallion Asset portfolio is divided in 3 key parts:

  1. Emerging monopolies
  2. Proven monopolies
  3. Moonshots

Stallion believes that there is nothing worse than competition in business, Monopoly is the only condition of every very successful business. Emerging monopolies are high growth market leaders which are mostly consumer facing business models in the scale up stage. Proven monopolies are mature companies which are growing at 1.5-2x faster than nominal GDP and help outperform in both up and downcycles. Moonshot are a combination of special situations plus trends portfolio. These are mostly high alpha expectation stocks! With regards risk management, Stallion focuses on riding the winners and cutting the losers. Stallion PMS beta (risk) has been historically lower than the benchmark but returns (alpha) has been very strong. Stallion operates only one fund i.e., The STALLION ASSET CORE PMS which is a Multicap offering. This PMS follows 4-sector focused approach with a ‘Buy & Rotate’ Strategy. This PMS portfolio construct is such that 40-60% weight is on Core Stocks, 40-60% weight is on Trends, and remaining is on Special Situations.

Awards & Achievements

• In 2022, Stallion Asset Core PMS was awarded Rank #2 as the Best PMS in the Multi Cap Category, on a 3Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, Stallion Asset Core PMS was awarded Rank #1 as the Best Newcomer PMS across all categories, on a 2Y Absolute Returns Basis. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2020, Stallion Asset Core PMS was awarded the Best PMS in sub-100 Cr Category, on a 1Y Absolute Returns Basis. 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
Stallion Asset Core Fund4.85%20.36%32.99%74.39%28.37%28.75%31.20%-28.83%
BSE 500 TRI1.92%17.88%16.20%33.42%16.47%21.89%18.50%-18.42%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %

Sector Allocation


Holding %
Consumer Discretionary 36.80
Financial Services 33.50
Industrials 9.10
Fast Moving Consumer Goods 8.10
Information Technology 7.70

Market Cap Allocation


Allocations %
Large Cap 33.00
Mid Cap 26.70
Small Cap 37.00
Cash 3.40

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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From the Founders & Managers of Stallion Asset PMS

What to expect from Stallion Asset Core Fund PMS?

The Stallion Asset Core Fund is the flagship fund of Stallion Asset. It is a growth oriented long only equity fund which specializes in investing in the next trending sectors across market cycles. Our focus lies on identifying high quality growing businesses which are both Leaders of today and Emerging Market Leaders of tomorrow. We aim to help you compound your capital in the 18-25% CAGR range for the next decade, with a balance of both wealth creation and wealth preservation.. The fund focuses on four sectors i.e. consumer, pharmaceuticals, financials and technology. The overall portfolio comprises 15-25 stocks, with a goal of delivering high risk adjusted returns during a bull and bear market cycle.

Who should invest in Stallion Asset Core Fund PMS?

The fund is suitable for everyone who has a minimum time horizon of 3-5 years, looking to invest in high quality growing secular businesses with primary focus on wealth preservation and wealth creation. The fund has a portfolio beta lower than the benchmark index, hence the overall portfolio volatility is less but still focuses on creating sustainable alpha over the index. Investors who are looking to back companies which have secularity of earnings, companies which are leaders or market leaders, backed by great promoters who want to take advantage of the market opportunity as we go from a 3 Trillion Dollar Economy to a 6 Trillion Dollar Economy.

 

The fund is not ideal for investors who invest in:

1) Government companies

2) Cyclical’s

3) Commodities

Which is the best company through which an investor can invest in Stallion Asset Core Fund 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 31 Jan 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.


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Do Not Simply Invest, Make Informed Decisions

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