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Sundaram India Secular Opportunities Portfolio (SISOP PMS)

KEY PORTFOLIO ATTRIBUTES #

Year of Inception 2010-02-01
Number of Stocks 15
Alpha (1Y) -6.12%
Beta (1Y) 0.81

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 investment objective of Sundaram India Secular Opportunities Portfolio (SISOP PMS) is to generate capital appreciation across market cycles by investing in a concentrated set of high conviction stocks.

It is a concentrated portfolio of around 15 stocks, designed for investors seeking returns through investments in a concentrated portfolio of companies with sustainable competitive advantages and reasonable valuations.

Strategy Highlights

Sundaram India Secular Opportunities Portfolio (SISOP PMS) Highlights:

• Concentrated portfolio of around 15 stocks
• Invest in select businesses with secular growth opportunities
• Filters based stock selection “3Q” Approach
• Mid and Small cap focus to bring in higher alpha
• 4×4 Wealth Multiplier Themes
• 7.4x wealth creation since inception (2011) [as of Feb 2023]

Investment Philosophy

Sundaram India Secular Opportunities Portfolio (SISOP PMS) attributes to the following themes:

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

Investment Strategy

Sundaram India Secular Opportunities Portfolio (SISOP PMS) looks to invest in secular growth opportunities across market caps with a long term orientation of portfolio building >3 years.

Sundaram India Secular Opportunities Portfolio (SISOP PMS) has the following screeners in place:

• Companies with growth opportunity > 15%
• Ability to generate > 15% ROIC
• Excellent cash flows from business
• Option to reinvest for growth
• Low D/E to sail through crisis situations and gain market share

Sundaram India Secular Opportunities Portfolio (SISOP PMS) 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 SISOP0.86%2.82%6.38%25.63%9.48%13.66%17.56%15.99%17.31%
BSE 500 TRI1.66%11.93%18.86%39.47%19.81%19.47%19.00%16.71%13.57%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
ICICI BANK LTD 9.09
ASIAN PAINTS LTD 8.65
AU SMALL FINANCE BANK LTD 8.31
TITAN INDUSTRIES LIMITED 8.23
ASTRAL LIMITED 7.61
Top 5 Equity Holdings 41.89

Sector Allocation


Holding %
Financial Serv ices 38.90
Chemicals 16.10
Consumer Durables 10.60
Consumer Services 9.40
Healthcare 9.10

Market Cap Allocation


Allocations %
Large Cap 52.90
Mid Cap 20.10
Small Cap 14.90
Cash 1

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 Sundaram Alternates PMS

What to expect from Sundaram India Secular Opportunities PMS (SISOP)?

• 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.

SISOP is a concentrated 15- stock portfolio that has a resilient track record of over 12 years, especially in down markets. Down capture of 72.0. Invests in companies with secular growth opportunities and hence has a lower risk profile. Over the last 12 years, Sundaram Alternates’ SISOP has remained resilient across multiple market cycles by sticking to our core investment thesis.

Who should invest in Sundaram India Secular Opportunities PMS (SISOP)?

Suitable for investors with an investment horizon > 3 years.
Investors seeking returns through investments in a concentrated portfolio of companies with sustainable competitive advantages and reasonable valuations.

Which is the best company through which an investor can invest in Sundaram India Secular Opportunities Portfolio (SISOP 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

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