| Alpha (1Y) | Beta (1Y) | Standard Deviation (1Y) | % of +ve Months (SI) |
|---|---|---|---|
| -6.58% | 0.93 | 18.25% | 61.78% |
Sundaram Emerging Leadership Fund (SELF) Portfolio
Key People
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.F | 2.25% | 9.27% | 23.55% | 7.80% | 4.69% | 24.64% | 15.72% | 20.77% | 17.34% |
| BSE 500 TRI | -0.61% | 7.73% | 17.34% | 11.34% | 9.15% | 23.33% | 12.56% | 16.44% | 12.13% |
QRC Report Card *
| Strategy | Category | Fund Manager | Date of Inception | Age Of PMS | Corpus (in Cr, approx) | Benchmark | Returns SI (CAGR) | Stocks In Portfolio | Sectors In Portfolio |
|---|---|---|---|---|---|---|---|---|---|
| Sundaram Alternates S.E.L.F | Mid & Small Cap | Madanagopal Ramu | 01 June 2010 | 13Y 3M | 794 | BSE 500 TRI | 17.34% | 20-25 | 5 |
| Portfolio Quality (Q) | Portfolio Risk (R) | Portfolio Consistency (C) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Index | Category Alpha (1Y) | Relative Alpha (1Y) |
% of +ve Months
(Fund Data) |
Alpha (1Y) | Beta (1Y) |
Standard Deviation (1Y)
(Fund Data) |
Sharpe Ratio (1Y)
(Fund Data) |
Alpha (SI) | Information Ratio (SI) | Consistency Ratio % |
| Nifty 50 | 8.55% | -8.41% | 61.78% | 0.14% | 1.04 | 18.25% | 0.99 | 6.86% | 0.57 | 56.69 % |
| Nifty 500 | 6.63% | -7.62% | -0.99% | 1.09 | 6.62% | 0.63 | 56.69 % | |||
| Nifty Midcap 100 | -5.03% | -8.4% | -13.43% | 1.02 | 5.18% | 0.50 | 54.78 % | |||
| Nifty Smallcap 100 | -1.59% | -4.99% | -6.58% | 0.93 | 8.62% | 0.62 | 58.60 % | |||
VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS
Portfolio Holdings
| Holding | % |
|---|---|
| AU SMALL FINANCE BANK LTD | 8.07 |
| BERGER PAINTS I LTD | 7.46 |
| NAVIN FLUORINE INTERNATIONAL LTD | 6.42 |
| SRF LTD | 5.95 |
| BAJAJ FINSERV LTD | 5.94 |
| Top 5 Equity Holdings | 33.84 |
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 | 29.00 |
| Mid Cap | 30.00 |
| Small Cap | 35.00 |
| Cash | 6.00 |
Do Not Simply Invest, Make Informed Decisions
WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION
Book
a call with our PMS AIF Specialists
From the Founders & Managers of Sundaram Alternates PMS
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Disclaimer
#Returns as of 31 August 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 Jun 23.
