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Sundaram India Secular Opportunities Portfolio (SISOP PMS)


Key Portfolio Attributes

Mr. Madanagopal Ramu

Inception Date: Feb 2010

Number of Stocks: Upto 15

Fund Manager Name: Mr. Madanagopal Ramu

Fund Manager Qualification: Qualified cost accountant and Management Degree from BIM Trichy TN.

Fund Manager Experience: 14 Years

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 SISOP5.7%4.0%-2.6%-2.5%9.3%23.9%10.9%15.0%16.9%
NSE 500 4.5%1.9%-1.3%3.0%10.9%23.9%9.9%12.6%10.5%

QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
HDFC BANK LTD 10.70
NAVIN FLUORINE INTERNATIONAL LTD 8.50
ICICI BANK LTD 8.50
AXIS BANK LTD. 8.50
ASTRAL LIMITED 6.30
Top 5 Equity Holdings 42.50

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 67.0
Mid Cap 20.0
Small Cap 11.0
Cash 2.

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 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 30 Apr 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 Mar 23.


Do Not Simply Invest, Make Informed Decisions