Multi-decade Investment Experience
- Rajesh Kothari, Founder of the firm has 27+ years of experience. Prior to AAA, Rajesh was Fund Manager with DSP MF & Partner with Voyager Investment Advisors (FII). Received CNBC TV18 – CRISIL Mutual Fund of the Year Award & Platinum Fund Manager Award for DSP EQUITY FUND.
- The Investment team has combined experience of more than 80 years in Indian equity market.
Client-Centric Business Model
- AAA is only Investment Management and not into other businesses like broking, wealth management, etc. Hence, no conflict of interest for the clients.
- AAA clients enjoy the benefits of directly communicating with the founder, thereby ensuring enhanced understanding.
- AAA clients include family offices, UHNIs and AAA PMS product is presently distributed by well known national distributors.
Superior Track Record
- AAA is one of the few players in the industry which has completed 13 years.
- During the last 13+ years, AAA IOP PMS delivered 17.7% CAGR vs 11.6% CAGR reported by BSE 500 Index.
- AAA IOP PMS received Best 10 year Performance Award (rank 2) in the country for delivering superior risk adjusted returns across categories by PMSAIF World (Feb23)(data analysed by IIM Ahmedabad).
|BSE Benchmark Index
|Minimum No. of Stocks
|Large Cap Exposure
|Mid & Small Cap Exposure
|Max Weight in 1 stock
|Max Weight in 1 Sector
|Max Weight in top 10 Stocks
Protecting Capital – DSD Mechanism
Three important risks : Governance, Technology and Business cycle – can be reduced only by Diversification. We invest across market cap, sectors, and companies to reduce company/sector specific risk.
We build the portfolio over a period of time. We do not follow Model portfolio approach
DISCIPLINED EXIT STRATEGY
We have a disciplined Exit strategy. We sell/reduce due to rebalancing of the portfolio, change in growth assumption of our portfolio company, expensive valuations.
Creating Wealth – 3M Approach
Market size determines size of opportunity. We prefer companies which are targeting large market size to generate exponential returns.
We buy the companies which are leaders in their sector as they are best positioned to navigate upturn and downturn of the economy.
Margin Of Safety
The price is what you pay. Value is what you get. We buy the companies which are available at reasonable valuations
Investment Process: Simplified
Companies which have a good corporate governance, strong business moats along with a reasonable profit size. Profit Propellers – 800 PAT > 50 crs
Deep Dive Stage
Companies which are market leaders and effectively positioned to grow and multiply. Risk Mitigators – 300 OCF/EBITDA, D/E, other filters
Companies with strong earnings growth prospects and right valuations. Alpha Producers – 40-60
Internal Checks - Forensic Assessment
Assess the consistency and fairness of the accounting policies
QUALITY OF CASHFLOW
Ability to convert the revenue to cash and re-invest into the business
Identify the potential fraud
To assess the governance
Internal Checks - Longevity Assessment
LONGEVITY OF RETURN RATIOS
Gauging business profitability and efficiency
LONGEVITY OF REINVESTMENT
Intensity to generate Self sustaining growth
LONGEVITY OF CASHFLOW
Identify financial strength
LONGEVITY OF BUSINESS GROWTH
Sustenance of revenue and earnings growth, Assessing competitive advantage
About Fund Manager
Rajesh Kothari : Founder & Managing Director
Rich experience of more than 26 years in Indian capital market with expertise in both Long Only & Long Short investment strategy. Former Director with Voyager Investment Advisors (US$500m) – USA based India dedicated fund. During his tenure, fund outperformed the benchmark indices significantly Former Fund Manager with DSP Merrill Lynch Fund Managers (DSP MF) for more than four years. The schemes delivered annualized return of 55% (Equity Fund) & 62% (Top100 Fund) outperforming benchmark indices by more than 20% & 10% respectively. The equity schemes maintained its “1st Quartile Ranking” consistently during his tenure.
- Received CMA Young Achiever Award 2014
- Rated as “Platinum Fund Manager” by Economic Times for DSP ML Equity Fund on a risk-adjusted return basis (Jul 2006)
- Received CNBC TV18 – CRISIL Mutual Fund of the Year Award 2006 for DSPML Equity Fund and Lipper India Fund Awards 2006 for best equity fund group for 3 years
- Invited to Maharashtra Economic Summit to present views on Indian Infrastructure
- Invited by Institute of Directors to present views on Governance Deficit
- Actively involved with Arham Yuva Group – philanthropic initiative
The only constant is change. The average lifespan of a company listed on the S & P 500 has reduced from 90 years in 1935 to 18 years, as per a McKinsey report. We are agile, and active, never letting our guard down.
- There is a need to rebalance weights for risk management purposes
- A company no longer meets our buy/hold criteria
- A company no longer meets our valuation criteria
- There is no longer a durable double digit return expectation for a company’s stock
- There is a more compelling investment opportunity to fund
Why AAA India Equity Fund?
Participation in IPOs, up to 10% in pre-IPOs/unlisted Equities, and up to 20% in derivatives to hedge
Access to Market Leaders
Aims for multi-cap exposure to ~50 market Leaders across sectors.
Aims to capture long-term growth with a strong balance sheet and high RoCE.
Grounded in Research
Combines top-down and bottom-up research with strong due diligence.
Track Record We have a proven track record of investment in companies yielding multibagger returns.
A High Conviction & Quality Approach
We invest in businesses with established management, a solid balance sheet, exceptional profits growth, and excellent corporate governance based on our unique 3M Investing Methodology. We think we can protect money and offer stability across market cycles by making long-term investments in businesses with strong fundamentals and lasting competitive advantages. Our 3M model of market size, market share, and margin of safety guides our radically resilient strategy.
The AIF Advantage
- Hassle-Free: Onboarding and departing processes are very easy and hassle-free.
- Pooled-account Convenience: As there won’t be any transactions in the personal account, which would increase the complexity of accounting, pooled accounts result in several conveniences.
- Tax Is Deducted At Source: There is no double taxation because tax is deducted at source.
Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.