Abakkus Personalised Opportunity-Specific Strategy

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Welcome to AIF & PMS Experts India Pvt. Ltd.

About Company

Abakkus Asset Manager LLP is an alpha-focused asset manager based in India. Mr. Sunil Singhania founded it in 2018 and called it after the simplest ancient computing device, the abacus. The goal and aim of Abakkus are to become one of India’s most reputable and successful asset managers. This ideology has shaped the Abakkus portfolio’s beliefs: Keep things as straightforward as possible. Be a firm believer in the basics. Focus on the fundamentals and numbers.

Fund Snapshot

Fund Type Multi-Cap PMS
Minimum Investment INR 50 Crores
Benchmark S&P BSE 500
Fund Manager Name Mr. Sunil Singhania / Mr. Aman Chowhan
Fixed + Variable Option 1.10% pa / 15% sharing over 9% hurdle rate
Exit Load Between 0 and 12 months from commencement date: 1.0%
Initial Drawdown INR 4-5 Crores
Portfolio Construct 5 to 8 Stocks

About Abakkus Asset Management

  • Abakkus is a boutique asset manager with an emphasis on alpha that oversees Indian equity long-only strategies worth about INR 10,000 crores*.
  • Our offerings include 
    • Close-ended Category III Alternative Investment Funds
    • Portfolio Management Services
    • Advisory Services for Domestic and Global Investors
  • Abakkus has established itself in the Indian equity horizon in just 4 years of incorporation in terms of performance and asset growth.
  • With time, Abakkus hopes to become one of India’s most renowned and successful asset managers.

Why Choose Abakkus Personalised Opportunity-Specific Strategy

  • A subset of Ultra HNW households are knowledgeable investors and know how to build wealth over the long term through equities investments.
  • These investors require a particular product and a distinct strategy for investing.
  • They do not wish to invest through platforms like mutual funds, alternative investment funds, portfolio management services, or direct equities in pooled or group equity investments.
  • These vehicles provide comparable strategies and portfolios to small, HNI, and Ultra-HNI investors as a group or pooled investments.
  • Backed by a highly-skilled, committed team of experts with a combined experience of about 200 years
  • A long history of success in public equity funds over two decades, through all market cycles
  • With a high level of devotion, urgency, and enthusiasm, adopt a start-up culture.
  • Focused investing in Alpha plays outside the numerous public firms supported by independent, non-conformist internal research
  • Greater freedom when investing in new industries and topics that an economy driven by entrepreneurs support
  • The investment team has consistently produced across market cycles.

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.

INVESTMENT APPROACH

  • A focused portfolio of 5-8 stocks with a selective idea-based strategy.
  • Concentrate on unique and innovative concepts with favorable risk/reward ratios.
  • Investment rather than distribution based on funding availability happens when we perceive opportunity in certain concepts.
  • Fundamentally grounded concepts chosen through a bottom-up methodology while conforming to our unique “MEETS” Framework
  • Invest to generate alpha and wealth creation, typically over the course of three to five years.
  • POSS is an exclusive offering for a short time designed for a family office equity exposure.

Investment Strategy

  • High Conviction: We will only invest if we believe in the idea.
  • Avoid paying a very high premium or investing in overhyped names with value-conscious investments.
  • Buy and Hold Fundamental bottom-up investing strategy with a 3- to the 4-year horizon in largely untapped areas
  • Positive Risk-Reward: I don’t mind giving up some profits, but I’d rather have downside protection.
  • Investments with an emphasis on alpha: Having a higher likelihood of success but uncertainty regarding when it will happen
  • Concentrate on Earnings and P/E Ratio Opportunity: Find companies with solid fundamentals, increasing profits at fair prices, and triggers that allow for PE expansion.
  • Look for stability in the investee company’s earnings and performance (or “steady & consistent”).
  • Comprehensive internal fundamental research: With less dependence on market ideas and supported by a 14-member internal investing team, Stock Ideation tracks roughly 350–400 firms.

Investment Opportunities

High Conviction

Look for businesses that are profitable and growing steadily. In the end, this is acknowledged by way of payment or acquisition. Additionally, markets are often willing to pay more for regularity.

Special Situations

Try to take advantage of special opportunities like M&A, demergers in conglomerates, Holdco companies, etc. As these developments take place, significant shareholder wealth could be released.

Undiscovered

Determine firms that investors are currently ignoring because of some misconceptions using primary research. The key is to pay attention to corporate developments and modifications that address market concerns and restore faith (along with rerating).

Business Turnaround

Businesses that stand to gain from changes in macro and micro factors. To revive or accelerate growth, management can also initiate a course correction.

Awaiting Growth

There are instances where stocks are trading below their intrinsic value because near-term growth has slowed. Only with clear triggers would we take them into disciplined consideration. Will be mindful to avoid falling victim to value traps.

Unique Business Model / Moat

Companies to target should have a distinctive business strategy or operational moat. Investing in fresh or developing ideas or locating non-linear firms may provide large rewards when done correctly.

Abakkus Personalised Opportunity-Specific Strategy

How will it operate

  • Minimum INR 50 crs allocation by investor
  • Call of further INR 4-5 crs only upon next ideation
  • Exit decisions based on the rationale for not achieving expected returns on investment
  • Investing structure based on drawdowns that are comparable to the PIPE-based strategy

Investment Philosophy

Risk reward equation

  • The expected returns need to outweigh the risk and uncertainty involved.
  • A great company may not always make for a great stock.
  • Pay attention to the cost and benefits we receive.
  • What is the price?

Patient investors

  • Buy and hold
  • Invest in stock as if investing in a business
  • Think like a partner

Agile and flexible

  • Every investment opportunity is evaluated on its own merits.
  • Not limited to a specific theme or style

Alpha generators

  • Consider investing with the goal of outperforming the markets rather than merely sticking to a benchmark index.
  • Companies in growth whose profitability is anticipated to increase faster than the industry average
  • Stocks that are fundamentally undervalued and have reasonable growth expectations
  • Mid Cap businesses with a scalable business model and expansion potential

Fundamental driven

  • Bottom-up research with a focus on the balance sheet
  • Numbers speak more than presentations and hype
  • Returns ultimately are all about earnings

Happy to be contrarian

  • Prefer to be first, early, and/or only investors
  • Do not chase the momentum
  • Be willing to examine businesses across sectors, market caps, and business cycles.

About Fund Managers

Mr. Sunil Singhania : Founder of Abakkus Asset Management, LLP

Sunil Singhania - AIf pms Expert Abakkus

  • Former CIO Equities of Reliance Nippon Life Asset Management (now Nippon Life India Asset Management) overseeing ~USD 11 billion of equity assets
  • First Indian to be appointed to the Global Board of CFA Institute, USA (2013-2019)
  • Ex-Honorary Chairman of the Investment Committee of CFA Institute (2018-19)
  • Currently appointed on the IFRS Capital Markets Advisory Committee (CMAC) and the only member from India to be appointed for the same (2020-2023)
  • Rated as among the best fund managers (Rated best Fund Manager by Outlook Business in 2016 & 2017 over 10-year time frame)
  • CA & CFA Charter Holder
Aman Chowhan : Aman Chowhan – Abakkus Asset Manager LLP

Aman Chowhan Abakkus

Aman Chowhan has over 17 years of expertise in Indian equities. He managed all local and offshore schemes for the PMS segment of Reliance Asset Management before joining Abakkus (now Nippon Life India Asset Management). Aman brings a regional and global perspective on investing and a good track record in the benchmark, absolute long, and long-short strategies from his time at Reliance’s Singapore office. He worked as a research analyst for TAIB Securities, Tata TD Waterhouse, and other brokerage firms before joining Reliance in 2005. Aman graduated with an MBA from Mumbai University.

Unique MEETS framework

Management

  • Quality – Capability and track record
  • Capital Allocation – capex is fine if ROE is maintained or enhanced
  • Capital Distribution – fair to minority shareholders
  • Error in decision – Business errors vs. avoidable mishaps

Earnings

  • Quality of earnings vs. reported numbers
  • Actual earnings vs. expected
  • Cyclical vs. Structural earnings
  • Companies that can double profits in 4 years or less or where EV/EBITDA can halve in four years

Events/Trends

  • Stock movement because of events.
  • It can be Buy or Sell opportunity
  • Events on the horizon
  • Disruptive trends/New themes

Timing

  • A good company is not necessarily a good investment if the price is not right
  • What is the price discounting
  • The time frame of investment
  • Mean Reversion

Structural

  • Size of the opportunity
  • Competitive positioning / MOAT
  • Consistent growth in profits

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.

5D Investment Process

DISCOVER

From the universe of 6000 companies, ~1500 companies are investable

LEADS :

  • Annual report
  • Analysts & reports
  • In-house screeners
  • Team experience
  • Ecosystem
  • News flow

DELVE

Deeper into ~350 companies with the help of an experienced investment team using the MEETS framework

MEETS FRAMEWORK :

  • Management quality
  • Earnings
  • Events
  • Timing
  • Structural

DEVELOP

Macro and micro analysis on >100 companies

ANALYSIS :

  • Management meetings
  • Competitive advantage
  • Potential triggers
  • Peer comparison
  • Financial modeling and sensitivity analysis

DETAIL

Idea generation on ~75 stocks

PORTFOLIO CONSTRUCTION :

  • Liquidity
  • Sector exposure
  • Portfolio beta
  • Risk management

DELIVER

Portfolio construction and risk monitoring of ~30* stocks

PORTFOLIO MANAGEMENT :

  • News flow
  • Monitoring
  • Quarterly Reviews
  • Sell discipline

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.

Exit Discipline

  • Fundamentals don’t work out as planned due to industrial decline, company-specific problems, and governance problems.
  • Not afraid to acknowledge failure when writing a thesis.
  • Stocks might perform far better than predicted.
  • The position becomes unimportant and is unable or unwilling to add.
  • In terms of risk versus reward, a new investment concept outperforms an existing holding.

Risk Management

  • Knowing exactly what you possess and why you own it is the greatest strategy to manage organizational risk. There isn’t a replacement for this. Our unwavering commitment to the balance sheet and the figures will assist us in reducing business risk.
  • Although there is no right or wrong valuation figure, we are cautious about paying too much. On this, we uphold a strong code of conduct.
  • Instead of making a fruitless guess about the market direction, we would concentrate more on the portfolio. While we would certainly be keeping an eye on the market, exercising patience is the greatest approach to managing market risk.
  • The portfolio is set up to address the near-term risk that liquidity poses in mid- and small-cap investing, but we still advise investors to factor in a time horizon of three to five years.
  • This portfolio may be concentrated and not sufficiently diversified across industries and stocks.

Book a call with our experts

For any queries, contact us on Mobile: +91 95616 10108, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected]     Whatsapp-logo

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.