ACE Focused 10 PMS Strategy

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Welcome to AIF & PMS Experts India Pvt. Ltd.

About The AMC

Ace Partners owns 51% of the joint venture Ace Lansdowne Investments Services LLP, while the Lansdowne Partners Group holds 49% of the shares. Vikram Kotak co-founded Ace Partners to establish an asset management company in India. He has extensive experience in the Indian capital market. Sir Paul Ruddock and Steven Heinz launched The Lansdowne Partners Group in the UK in 1998 with the goal of creating a premier investment management partnership that is centred on providing excellent long-term investment returns and first-rate customer service. Throughout the years, The Lansdowne Partners Group has won several industry honours for both exceptional performance and functional infrastructure.

Fund Overview

Ace Lansdowne Investments Services LLP (Ace Lansdowne) is a portfolio manager registered with the Securities Exchange Board of India (SEBI) that provides clients with a variety of investment methods. One of Ace Lansdowne’s strategies, the Ace Focused 10 strategy, invests in a maximum of 10 high conviction equities across sectors and market caps with the goal of generating long-term returns during market cycles. This strategy requires a minimum investment of Rs. 1 crore.

The objective is to locate and make investments in businesses with good corporate governance, a solid management track record, and exceptional execution skills. The maximum possible exposure of the portfolio to debt and money market instruments/funds is 20% at all times. The Strategy provides entrance and exit loads free of charge, very competitive management fee structures, and reliable infrastructure for a comfortable experience.

Investment Universe

Universe of carefully selected stocks by focusing on management quality, growth opportunities & strong fundamentals across the market cap & sectors with high liquidity, along with debt and/or money market instruments/funds

Investment Objective

The objective is to generate long term returns across the market cycles by investing in maximum 10 high conviction stocks across sectors and market cap

Value Proposition

Long-term capital appreciation by actively managing a concentrated portfolio of carefully chosen maximum 10 high-conviction stocks, filtered through well defined Investment Process

Investor Flexibility

Daily investment/redemption cycle with flexible STP facility allowing a pre-determined 10%/20% amount to be transferred from our Liquid Strategy to the Chosen PMS strategy at monthly intervals

Clear & well-Defined Return Objective Investment Process

  • Stock universe : Companies with strong fundamentals & good corporate governance
  • Global & Local economic analysis
  • Valuation & recent performance
  • Re-asses MQS
  • Re-visit Fundamentals
  • Check Market Liquidity/ flow
  • Set Target Price/ Time horizon
  • Execute trade 
  • Once target achieved

Focus on Risk Mitigation

  • Management Risk: Follow Management Quality Scoreboard diligently
  • Financial Risk: Rigorous Balance sheet/Cash flow analysis
  • Liquidity Risk: Adherence to Market Cap Criteria and strictly follow LST Policy (Liquidity Stress Testing) for the Portfolio
  • External Risk: Continuously watch and analyse all macro developments and its impact 
  • Concentration Risk: Adherence to Stock/Business Group Limit/Sector Limit (as per regulation/policy)

Management Qualitative Scorecard

Backbone of The Research

  • Promoter Holding
  • Key Institutional Shareholding
  • Promoter Pledging
  • Frequent Buy/Sell done by Promoters
  • Business efficiency (any cost control measure or margin improvement)
  • Historical dividend payout ratio
  • Remuneration paid to promoters (As % of PAT)
  • Related Party transaction with Promoter/Group companies
  • Any internal Loans & Advances/Investment to Group companies
  • Any notice by SEBI/ any other authority regarding breach of regulations
  • Contingent Liabilities : Anything Material
  • If the Company pays tax or not
  • Transparency in treatment of Minority Shareholders
  • Material non-core business interests of the promoter group
  • Structure of the Board : Number and Quality of Independent Directors
  • Quality of Auditors : How transparent is the rotation process of Auditors
  • Nature of growth progression

Strategy Rationale

  • Is there any empirical evidence which suggest that a concentrated strategy does well in long them? Yes! The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. As per one of the articles by Mr. Sean Williams, 86% of Warren Buffett’s Portfolio is invested in 10 Stocks
  • What differentiates this strategy? – “You can’t take the same actions as everyone else and expect to outperform.” – Howard Marks. Under concentrated strategy, the primary risk management techniques is insisting on knowing what we own and why we own it. This strategy will contain only as many ideas as can be well researched. The ability to focus on a smaller number of companies will give a competitive advantage. Furthermore, the investment under this strategy will be for long term, which will reduce the short-term volatility in the portfolio.
  • So, diversification is unnecessary? – Not exactly. We believe diversification is important part of portfolio  construction, but if one diligently searching for good opportunities may only find a few to invest. When someone finds a good opportunity, then they should hold a substantial position in that investment to make a good return out of it. Furthermore, the strategy will invest across the market sector & market cap, which will enable to achieve an optimal portfolio diversification. So, in nutshell, this strategy will be concentrated yet diversified enough.
  • But high concentration can lead to overconfidence? – Not always. As Warren Buffett mentioned in his 1996 letter, what an investor needs is the ability to correctly evaluate selected (not every or even many) businesses. The size of the circle of competence is not very important; knowing its boundaries, however, is vital.” So many times, concentration is a sign of humility by knowing what your boundaries & doing well think that.

Salient Features

Investment Strategy

Endeavour is to identify and invest in maximum 10 high-conviction stocks, primarily for long term

Focus on Fundamentals

Investing in companies with high industry growth along with strong corporate governance, high quality management pedigree and superior execution capabilities

Portfolio Composition

Investment strategy will be sector & market cap agnostic but with high liquidity. The portfolio’s exposure to debt and money market instruments/funds will be a maximum 20% at all times

Investment Approach

Concentrated strategy, better stock picking through solid research & rational thinking, timely entry depending on valuation and constant monitoring can help to generate outsized returns over the time cycle

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.