Abakkus Emerging Opportunities Fund Portfolio
|Year of Inception||2020|
|Number of Stocks||Around 25|
|Investment Horizon||3-5 yrs|
|Fund Managers||Sunil Singhania and Aman Chowhan|
Abakkus Asset Manager LLP is an Indian asset manager that focuses on alpha. It was founded in 2018 by Mr Sunil Singhania and is named after the simplest ancient computing equipment, the abacus. Abakkus’ objective and vision is to become one of India’s most respected and successful asset managers.
The Abakkus portfolio beliefs have been moulded by this philosophy:-
- Keep things as simple as possible.
- Believe in the fundamentals.
- Concentrate on the basics and numbers.
Abakkus Emerging Opportunities Fund Performance
The portfolio had another great month, logging in a good ~11% returns for the month. The benchmark returned ~7% and hence there was a good ~4% alpha by the fund for the month. Portfolio companies continued to report strong earnings growth and that in a major way, contributed to these returns. Abakkus Fund continues to be optimistic about its portfolio holdings and have not materially changed the portfolio construct.
Abakkus Asset Management alternative investment funds (AIFs) provided investors with a positive return in 2020. The Abakkus Emerging Opportunities Fund 1, popularly known as AEOF, returned 51 percent in CY20. On the other side, Abakkus Growth Fund – 1 (AGF) saw a year-over year increase of 28 percent. Regardless, both closed-ended category III AIFs outperformed their respective benchmarks and markets.
What is the investment philosophy of the Abakkus Emerging Opportunity Fund Portfolio?
Abakkus Emerging Opportunity Fund Portfolio is an asset manager with its core focus on alpha. The focal point of the Abakkus Emerging Opportunity Fund Portfolio is to invest in benchmark portfolios. They support various market capitalizations.
Abakkus Emerging Opportunity Fund Portfolio’s investment managers follow the 15:15:15 approach. The 15:15:15 approach is when investments are made in businesses having a minimum of 2 criteria out of 3
The three criteria are that the business’s return on equity should be above 15%, earning growth above 15%, and the price-to-earnings ratio should be 15. Abakkus Emerging Opportunity Fund Portfolio’s investment managers believe in and stand by the ‘bottom-up approach to stock picking. Their large-cap allocation has its focus on stability with a ‘top-down’ sectoral view. Growth companies, value companies, and buy-and-hold companies are the only kinds of companies Abakkus Emerging Opportunity Fund Portfolio invests in. They focus on chasing earnings rather than on chasing momentum
What investment horizon does Abakkus Emerging Opportunity Fund Portfolio cater to?
Abakkus Emerging Opportunity Fund Portfolio focuses on long-term investment horizons, i.e. large-term investments. They invest in companies with 3 to 5 years of the investment horizon.
Does Abakkus Emerging Opportunity Fund Portfolio have any penalties, unfinished proceedings, litigations, findings of review and inspection, or investigations for which action may have been initiated or taken?
Abakkus Fund Portfolio has no penalties, unfinished proceedings, and litigations, findings of review and inspection, or investigations for which action may have been initiated or taken by any regulatory bodies.
What is Abakkus Emerging Opportunity Fund Portfolio’s objective and vision?
Abakkus Portfolio’s objective and vision are to be one of India’s most respected and successful asset managers.
On what beliefs are Abakkus Emerging Opportunity Fund Portfolio’s philosophy based?
Abakkus Emerging Opportunity Fund Portfolio’s philosophy is based on three beliefs.
To keep things as simple as possible.
Follow the fundamentals religiously.
Focus on concentrating on basics and numbers.
How are Abakkus Emerging Opportunity Fund Portfolios funds performing?
Abakkus Emerging Opportunity Fund Portfolio started in 2020 and has given a positive return to its investors. Its Abakkus Emerging Opportunity Fund 1, also known as AEOF, gave a positive return of 51 per cent in the calendar year 2020. Abakkus Growth Fund 1, termed AGF, witnessed a year-over-year increase of 28 present. Abakkus Emerging Opportunity Fund Portfolio has been outperforming its benchmarks and markets since the year of its inception.
What businesses does Abakkus Emerging Opportunity Fund Portfolio invest into?
Abakkus Emerging Opportunity Fund Portfolio invests in 3 kinds of companies’ stocks. The companies it invests in are growth companies, value companies, and buy-and-hold companies. Growth businesses make significant positive cash flows and earnings at faster rates than the overall market. Companies that appear to be undervalued are known as value companies. Buy-and-hold is a position in trading in which investors buy stock in companies and hold them for a long time, with the objective being to realize price appreciation despite volatility in the market.
About Fund Managers
Sunil Singhania holds a bachelor’s degree in business from Bombay University and a Chartered Accountancy degree from the Institute of Chartered Accountants of India (ICAI), Delhi, with an all-India rank. He has also obtained the privilege to utilise the CFA Institute’s Chartered Financial Analyst credential. Sunil has over 25 years of experience as a CFA. He is the founder of Abakkus Asset Management, LLP, an asset management firm focusing on India that he founded in 2018. He was previously a Global Head of Equities at Reliance Capital Ltd. Singhania has guided Reliance Mutual Fund’s (now Nippon India Mutual Fund) equities schemes to be recognised among the top as CIO – Equities. Under Singhania’s direction, the Reliance Growth Fund (now Nippon India Growth Fund) increased by more than 100 times in less than 22 years. He is also the first person from India to be elected to the CFA Institute Board of Governors, where he now chairs the Investment Committee and serves on the Nominating Committee.
Aman Chowhan is an MBA graduate of Mumbai University. Aman has over 17 years of experience in the Indian equity market. Prior to joining Abakkus, he worked for Reliance Asset Management’s (now Nippon Life India Asset Management) PMS branch as the Portfolio Manager for all local and offshore schemes. Aman brings a regional and global perspective to investing, having worked in Reliance’s Singapore office. He has a great track record in benchmark, absolute long and long-short strategies. He worked as a research analyst for TAIB Securities, Tata TD Waterhouse, and other brokerage firms before joining Reliance in 2005.
Abakkus as an asset manager has its key focus on alpha. The main focus of Abakkus Emerging Opportunities Portfolio is to invest in benchmark agnostic portfolios across different market capitalisations.
The investment managers at Abakkus Emerging Opportunities Portfolio follow the 15:15:15 approach. Here, they aim to invest in businesses having at least two out of three criterias.
- ROE >15%
- Earnings Growth >15%
- P/E Ratio < 15
The investment managers at Abakkus believe in the ‘boEmerging Opportunities Portfolio follows the ‘bottom-up’ approach to picking stocks. The large-cap allocation is focussed on stability with a ‘top-down’ sectoral view. They invest in three kinds of companies viz,. Growth companies, value companies and buy-and-hold companies. They prefer to be contrarian and invest with focus beyond chasing momentum, but chasing earnings.