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Sundaram Emerging Leadership Fund (SELF) Portfolio


Year of Inception 2010-06-01
Number of Stocks 20-25
Alpha (1Y) -30.20%
Beta (1Y) 0.68

About SUNDARAM Alternate Assets

Sundaram Alternate Assets Ltd. (SA) is a wholly-owned subsidiary of Sundaram Asset Management Company Limited (SAMC), that caters to investment needs of high net-worth individuals (HNIs). SAMC is a wholly-owned subsidiary of Sundaram Finance Limited, a leading non-banking finance company in India. Sundaram Portfolio Managers (SPM) and Sundaram Alternative Investment Funds (AIFs) are the divisions under the SA umbrella. Built on a foundation of trust, Sundaram Alternates tailors solutions to help you meet your long-term wealth creation goals.

Key People

Mr. Madanagopal Ramu
Mr. Madanagopal Ramu Fund Manager

Investment Objective

The objective of Sundaram Emerging Leadership Fund (SELF) Portfolio is to seek long term capital appreciation with investment in mid and small-cap companies.

It is a multi-sector portfolio with a mix of compounders & cyclicals. It is ideal for long-term investors seeking returns through investments predominantly in small and midcap stocks and are comfortable with short-term volatility.

Strategy Highlights


Sundaram Emerging Leadership Fund (SELF) Portfolio Highlights:

• Long track record of performance: 12+ years l 3 market cycles
• Focus on consistent alpha generation
• Concentrated bet on small number of good mid and small cap businesses
• Leverage Mid & Small cap strength
• 3Q approach: Disciplined stock selection process
• Identify long term trends and invest early in them
• Bet on management committed to growth
• Wealth Multiplier Effect: AUM multiplied ~6.6x since inception [as of Feb 2023]

Investment Philosophy

Sundaram Emerging Leadership Fund (SELF) Portfolio follows the below mentioned Key Attributes:

• Emerging leaders – focus on Mid / Small cap companies which are growing faster than the industry. Bet on Sundaram’s strength in the mid & small cap space; a differentiated yet concentrated portfolio positioned attractively along the cap curve.
• Asset light / High ROCE businesses
• Excellent Cash conversion from operations
• Multi-sector portfolio
• Stocks with market cap less than Rs. 500 billion.

“EASE” portfolio

• Emerging leaders – clean and high quality promoters / management
• Asset light & High ROCE businesses are preferred
• Scalable companies: mid cap to large cap, small cap to mid cap transitioning companies
• Excellent cash conversion from operations.
• Identify stocks that are in early stages of their business cycle and could emerge as tomorrow’s large caps.

India 2025 – Themes
• Financial inclusiveness
• Phygital Bluechips
• Consumption Czars
• Export Voyagers

Investment Strategy

Sundaram Emerging Leadership Fund (SELF) follows the 3Q Quality Approach to Stock Selection:

Quality of Business

▪ Scalability: How big is the opportunity?
▪ Self Sustaining business models: 3Q Financial framework
▪Strong differentiating factors in business: What is the key competitive advantage to sustain the growth over long term?, and is it cost competitive, a superior brand leading to higher pricing power or pure execution?

Quality of Financials

▪ Ability to double earnings in 4-5 years
▪ Growth = Reinvested Cash x RoIC
▪ Biz. with min RoIC of 15%
▪ Higher cash generation to lead to higher reinvestment
▪ Debt to Equity should be <0.5x as low debt helps businesses navigate tough times

Quality of Management

▪ Past execution track record
▪ Vision of management
▪ Focus on high sustainable growth
▪ Past record of identifying and investing in profitable opportunities
▪ Good corporate governance track record
▪ Visionary
▪ Problem solving

Sundaram Alternates' Niche

• Strong Track Record

• Low Churn

• Time Tested Stock Selection

• Reach Across Country

• Transparency

• Strict Adherence to Risk Guidelines

• Shared Research Capabilities

Awards & Achievements -Across Sundaram Alternates’ PMSs & AIFs

• In 2023, Sundaram Alternates’ High Yield Secured Debt Fund – II won the Investors Choice Award for the Best CAT II AIF in the Private Credit Space. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, Sundaram Alternates’ Emerging Leadership Fund (SELF) Portfolio was awarded Rank #2 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.

Performance Table #

Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Sundaram Alternates S.E.L.F7.80%11.20%14%27.60%24.60%14.90%20.80%16%18%
BSE 500 TRI7.10%11.70%16.70%38.30%30.90%19.90%20%15.30%13.70%

QRC Report Card *


Portfolio Holdings

Holding %
SRF LTD 5.95

Sector Allocation

Holding %
Financial Services 34.50
Consumer Services 20.00
Chemicals 16.20
Consumer Durables 7.80
Healthcare 6.00

Market Cap Allocation

Allocations %
Large Cap 15.30
Mid Cap 30
Small Cap 40.50
Cash 14.

Do Not Simply Invest, Make Informed Decisions


imageBook a call with our PMS AIF Specialists

From the Founders & Managers of Sundaram Alternates PMS

What to expect from Sundaram Emerging Leading Fund (S.E.L.F) PMS?

• Investments backed by strong research with a track record of ~12 years across our key flagship strategies – SISOP, S.E.L.F., Voyager.
• Disciplined stock picking approach using our 3Q filters – Quality of Business, Quality of Management and Quality of Financials.

Significant exposure to mid and small caps resulting in a higher risk-reward. The portfolio has outperformed the benchmark ~99% of the times on a 5Y rolling basis. The performance of the portfolio in the down markets is sufficiently captured by the down capture of 67.0. Over the last 12 years, Sundaram Alternates’ S.E.L.F. has remained resilient across multiple market cycles by sticking to our core investment thesis.

Who should invest in Sundaram Emerging Leading Fund (S.E.L.F) PMS?

Suitable for investors with an investment horizon > 3 years.

Investors seeking returns through investments predominantly in small and midcap stocks and are comfortable with short-term volatility. The portfolio has a higher risk reward due to the inherent nature of the investments. Investors should remain invested for longer time periods and avoid short-term noise to reap the benefits from the portfolio.

Which is the best company through which an investor can invest in Sundaram Emerging Leadership Fund (SELF) 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.


#Returns as of 30 June 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 Mar 24.

Do Not Simply Invest, Make Informed Decisions

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