About Company
Ambit is one in every of India’s most reliable carriers of economic recommendation and capital. We are targeted on turning in tailored economic answers which can be appropriate to our customers’ needs. These are primarily based totally on our deep expertise in the Indian economic system and marketplace forces, unequalled studies and our client-targeted approach. At the middle of our answers lies the ‘abacus,’ which has ruled the improvement of mankind for centuries. Based in this ethos, we offer insightful answers that create intrinsic price for all our stakeholders. Our enterprise acumen offers us the cappotential to peer the large photo and recognize the levers that have an effect on the enterprise drivers via clever selections and movements that could growth the long-time period profitability for our customers and ourselves ensuing in sustainable growth. We agree with that at Ambit, we own the cappotential to interrupt down complexity whilst suggesting the greatest economic answers to our customers.
Fund Snapshot
| Year of Inception | 2017 |
| Number of Stocks | 12 |
| Investment Horizon | Long Term |
| Fund Managers | Manish jain |
Extensive quantitative filters:
- Coverage Universe = Stocks with a track record of uniformity of 10% or greater over the last ten years. Revenue growth plus a ROCE of more than 15%
- Our competitive benefit = in-depth knowledge of organisational DNA.
- Will the company promote consistency of growth in the future (for more than a decade)?
- Combine valuations and longevity.
- A portfolio of 10-15 concentrated stocks.
- Monitor potential earnings of portfolio companies and Churn (if necessary) = <1 stock per year on the mean.
Quality never goes out of fashion:
Many of their beliefs and values have been put to the test as a result of the recent market turmoil. It’s natural in these times to reflect on the current situation, and we at Ambit also spent some time doing so. As previously discussed, a detailed stress test of your portfolio companies focused on Survive + Thrives yielded extremely positive results.
Consistent outperformance, on the other hand, is an outcome, and while many factors contribute to this outcome, it is widely attributed to a combination of the following.
- Stringent quantitative filters,
- Deep research and focus,
- High focus on earnings growth and earnings quality (lower obsession with timing when one is investing in a superior calibre of companies) and
- Risk.
Investment approach
Overcoming disruptions and evolutionary modifications over long periods require unique DNA.
Investigate strength – comprehend how this DNA has delivered a track record of consistency for more than 10-15 years. We believe that history serves as a mirror into the future.
The ideal mindset is collaborating with a business while maintaining a long-term investment perspective rather than simply purchasing stocks.
Portfolio companies are expected to consistently deliver earnings CAGRs in the mid to high teens.
B2C sectors (such as consumption and banking) and large established players are typically sector leaders.
Consistent returns in a low-risk environment, ignoring macro and micro trends
If the holding period is at least three years, historical data indicates a high possibility of capital protection.
Market leaders in B2C sectors:
The majority of Coffee Can PMS companies dominate their markets and have an unrivalled comparative edge in their major sectors.
Portfolio allocation with risk management:
Sector allocation:
| Financials | 25% |
| Building Material | 24% |
| Consumer Discretionary | 17% |
| Consumer Staples | 13% |
| Information Technology | 8% |
| Retail | 6% |
| Retail Diagnostics | 6% |
| Cash | 1% |
Segment allocation:
| Large Cap | 76% |
| Mid Cap | 23% |
| Small Cap | 0% |
| Cash/Equivalent | 1% |
Risk ratios:
| Beta | 0.59 |
| Sharpe Ratio | 1.05 |
| Max Drawdown: Portfolio | -17.1% |
| Max Drawdown: Benchmark Index | -29.3% |
Deep drive research through disruption series:
In addition to considering the immediate next steps for your portfolio, and in keeping with our long-term investment thesis, we like to be aware of long-term disruptions that your companies may face in the future.
Ambit Coffee Can PMS publish their thoughts on breakdowns in our portfolio companies and industries on a regular basis.
Overview of Ambit
World’s premier full-service investment bank with a focus on India:
- Innovative approaches that reduce complexity
- A thorough understanding of the current regulatory framework,
- A diverse range of tailored solutions for business owners, corporations, institutional investors, family offices, and High Net Worth Individuals are available (HNWIs).
Partnerships that work:
- Strategic alliance with QInvest, Qatar.
- Strategic alliance with Daiwa, Japan, for M&A.
Professional and experienced pan-India team:
It consists of over 800 people.
Proven track record:
- Closed over 100+ M&A/PE and 50+ ECM transactions in the last millennium,
- Consistently ranked in the top 10 M&A advisory firms and
- Manages the wealth of over 2500 HNI families.
Unique Feature
- A large cap-oriented portfolio
- Ideal investment horizon of 8-10 years
- Concentrated portfolio with low churn
- Great companies with a proven track record of consistent growth and high RoCE
Coffee Can Portfolio is a highly concentrated portfolio with 10-15 stocks and intended churn of less than 1 stock per year on average. This allows the coffee can portfolio to benefit from “Power of Compounding” Coffee Can Pms intends to provide 20-25% Earnings CAGR over long term holding periods with volatility of portfolio similar to Govt. bonds. Do not attempt to time the market on the basis of speculation surrounding oil price, exchange rates, politics or other non-fundamental factors. Most companies in Coffee Can Pms dominate their markets and possess unassailable competitive advantages in their core industries.
About Ambit Asset Management
Philosophy
Consistent Track Record
Companies having an excellent financial track record of revenue growth and earnings for over 10-20 years with identifiable DNA
Long Term Wealth Creation
Coffee Can Portfolio intends to provide 20-25% Earnings CAGR over long-term holding periods with the volatility of portfolio similar to Govt. bonds (holding period>3 years).
Low/Negligible Churn
Coffee Can Portfolio is a highly concentrated portfolio with 10-15 stocks and an intended churn
of less than 1 stock per year on average. This allows the portfolio to benefit from the “Power of Compounding”.
Do not “TIME” the market
Do not attempt to time the market on the basis of speculation surrounding oil price, exchange rates, politics or other non-fundamental factors.
Stringent quantitative filters
Each offering is based on a deeply researched and backtested framework
to generate the investment universe
▪ High threshold for performance over long spans of time, greatly
Minimize chances of poor performers or poor quality companies
entering into the investment universe
▪ High quality of accounts and corporate governance is uncompromised
Experienced team & deep-dive research
The dedicated and experienced research team
▪ Research processes inspired by IE Research
▪ Investment Committee to approve all investment decisions
▪ Part of the larger Ambit group lends advantages
▪ Focus on what is knowable and what is important
Focus on earnings growth + earnings quality
Lower obsession with timing when one is investing in a superior Caliber of companies
▪ Companies with a consistent track record and leadership traits are Preferred
▪ Past track record + Future sector potential + Current management Capabilities = Comfort in delivering quality earnings
Risk management
Concentrated Portfolios deliver the best returns as returns do not get Average out
▪ Lower drawdowns due to consistent performers in secular sectors
▪ Long term orientation with low churn realize the power of compounding
▪ Long term orientation with low churn realize the power of compounding
▪ Long term orientation with low churn realize the power of compounding
About Fund Managers
Manish Jain:Fund Manager of Coffee Can PMS
Manish Jain Ambit Asset Management’s Coffee Can PMS Fund Manager is Manish Jain. He has over 16 years of equities research experience. He spent a decade as a Lead Analyst at Nomura covering FMCG, electrical durables, and retail before joining Ambit Asset Management. Before joining Nomura, Manish worked in equities research at Lehman Brothers, Enam Securities, ICICI Securities, and Motilal Oswal, covering consumer, paint, sugar, pipes, auto, and auto ancillaries, among other sectors. For many years, ADIA, Capital World, and Capital International have repeatedly chosen him as the highest performing analyst in the research team for solid corporate access, among other things. Manish possesses an MBA in Finance from the Symbiosis Centre for Management and Human Resource Development in Pune and a Level 2 Chartered Financial Analyst (USA) certification.
Aishvarya Dadheech:Director & Fund Manager – Ambit Investment Advisors Private Limited
Ambit Asset Management’s Ambit Good & Clean Midcap Portfolio and Ambit Emerging Giants Portfolio are managed by Aishvarya. He has over 13 years of investment and equity research expertise. Before joining the Asset Management division, he was a Vice President in the firm’s Principal Investment division, where he was responsible for managing Ambit’s shareholder money. Aishvarya spent seven years as an Equity Fund Manager at Reliance Life Insurance before joining Ambit’s Principal Investment division in 2017. He was a member of the investment team that oversaw a $2.5 billion AUM. He also spent three years as an Equity and Credit Analyst at CRISIL Limited (a Standard & Poor’s Company). Aishvarya is a Chartered Accountant and a CFA® charter holder. He has an MBA in Finance and a bachelor’s degree in Accounting (Honours) from St. Xavier’s College in Kolkata.
Investment Philosophy
Ambit Coffee Can follows the Coffee Can Philosophy of targeting super property that maintain their aggressive benefit ultimately no matter problems and adversities at ordinary intervals.
This approach stresses extra on first-rate making an investment in place of price or boom.
It selects organizations who have:
extra than INR one hundred crore marketplace cap, presence withinside the marketplace for extra than ten years, sales boom of 10% and go back on capital hired extra than 15% withinside the final ten years.
The fund sees decrease erosion of marketplace price in the course of marketplace crashes. A decrease churn of best 5-10% in a yr guarantees decrease expenses. This is an evergreen fund: you can still spend money on good, awful and common marketplace conditions.
FAQs
What does Ambit do?
Ambit is a leading provider of financial advice and capital, offering customized solutions in the areas of Investment Banking, International Equities and Research, Asset Management, Wealth Management, and SME lending.
Why is it called Coffee Can investing?
Earlier coffee cans were used to store money and were hidden beneath the mattress. Then, that money was used for further investments. This system was prevalent before the banking system.
Likewise, today Ambit’s investment philosophy is based on buy and forget, also known as coffee can investing. Buy the stocks and not worry about them to earn maximum profits in the long run.
How to build a Coffee Can portfolio?
Here are some points to build a Coffee Can portfolio:
- The company should exist for at least ten years.
- The revenue growth should be at least 10% year on year.
- Market Capitalization should be more than Rs. 100 crores.
- The company should have good brand value.
- The company should have a competitive edge.
- It must use a Coffee Can Portfolio Screener.
How to invest in the Coffee Can Portfolio?
Some ways that will help you to invest in Coffee Can Portfolio for earning maximum profits are:
- Invest in a lump sum for making lump sum profits. It is always advisable to invest a considerable amount of money once a year.
- Invest in SIP every month; this should be done with the help of an assistant paid person.
- Buy the dips with the hope that they will rebound or exhibit an uptrend in the future.
Which is better, coffee can investing or mutual funds?
If you are interested in keeping your money long-term, then Coffee Can investing is the best choice. Otherwise, choose mutual funds for short-term profits and investments.
What is Ambit’s approach towards their clients?
Ambit believes in providing unbiased advice. They even advise their clients regarding when is the time to walk out of the transaction. We have a team of experienced persons who work towards creating a network of healthy relationships. For more advice, reach out to www.aifpms.com by calling on 9881156123.
Related Products
| Product - AMC | Category | AUM (in Cr.) | Performance | 1M | 3M | 6M | 1Y | 2Y | 3Y | 5Y | 10Y | SI |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Ambit Coffee Can Portfolio AMC Name: Ambit Investment Advisors Limited Inc Date: Mar-2017 |
Large Cap (PMS) |
1090 | Strategy | -2.60 | -3.80 | 4.90 | 0.20 | 0.50 | 12.30 | 13.30 | NA | 15.50 |
| Nifty 50 | -2.70 | -3.10 | 6.50 | 7.00 | 5.10 | 19.30 | 14.30 | NA | 13.40 | |||
|
Emerging Giants Portfolio AMC Name: Ambit Investment Advisors Limited Inc Date: 1-Dec-17 |
Small Cap (PMS) |
412.4 | Strategy | -1.50 | 3.80 | 18.10 | 19.10 | 13.30 | 28.10 | 22.00 | NA | 17.10 |
| BSE Smallcap | -2.90 | -1.40 | 10.90 | 9.60 | 6.70 | 22.00 | 15.40 | NA | 12.40 | |||
|
TenX Portfolio AMC Name: Ambit Investment Advisors Limited Inc Date: 13-Dec-21 |
Multi Cap (PMS) |
201 | Strategy | -3.20 | 3.10 | 16.80 | 15.60 | NA | NA | NA | NA | 10.50 |
| BSE 400 | -2.90 | -1.40 | 10.90 | 9.60 | NA | NA | NA | NA | 7.30 | |||
|
Good & Clean Mid Cap Portfolio AMC Name: Ambit Investment Advisors Limited Inc Date: 12-Mar-15 |
Mid Cap (PMS) |
570 | Strategy | -2.50 | 3.90 | 16.80 | 13.40 | 6.20 | 19.40 | 15.90 | NA | 13.30 |
| Nifty Midcap 100 | -2.90 | -1.40 | 10.90 | 9.60 | 6.70 | 22.00 | 15.40 | NA | 11.70 |
For any queries, contact us on Mobile: +91 988 115 6123, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected] 
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.