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Ambit Good And Clean

Ambit Good And Clean

Ambit Good & Clean Midcap Portfolio comprises primarily Mid-cap companies that have a good track record of capital allocation and clean accounting practices. We try to identify companies who have the potential to become the large cap companies of the future. The result of our stringent selection process is a high-quality portfolio of select businesses, which generate superior benchmark returns and yet minimize the drawdowns over a long period of time. Essentially, while the objective is to generate returns, the even bigger goal is to better manage drawdowns, because we believe that doing the latter successfully is critically vital in achieving the former. The idea with Good and Clean fund is to identify, early in their growth cycles, market leaders in niche categories with immense potential for sustainable accretion to create significant wealth over the long term

Fund Snapshot

Year of Inception 2015
Number of Stocks 13-18
Investment Horizon 3 Years
Fund Managers Aishvarya Dadheech

About Fund Managers

Aishvarya Dadheech removebg preview

Aishvarya Dadheech is the Director & Fund Manager of Ambit Good & Clean Midcap Fund & Emerging Giants Fund.  Aishvarya has completed his MBA in Finance and is a CFA charterholder. He comes with 12 years of experience, of which he spent two years with Ambit

Unique Feature

The portfolio focuses on mid-cap companies having a good record and employing clean accounting practises.

Investment Philosophy

It ranks companies as clean companies with no political connectivity but has high corporate governance, clean accounting, high promoters’ integrity, who don’t compromise on ethics, have no political party-related transactions, and don’t favour linkages to bureaucrats.

In comparison, Ambit Good & Clean ranks companies as Good Companies based on focused capital allocation, high return on equity, high return on capital employed, oligopolistic nature of the business, high earnings and high cash flows.

Its proprietary forensic accounting framework identifies good accounts.

In contrast, its proprietary greatness framework identifies companies with consistent growth potential resulting in a concentrated portfolio of 15-16 stocks. And who have a low churn of less than 15-20% in any year amounting to 2-3 assets being replaced.

FAQs

What is so unique in the investment process followed by Ambit’s good and clean portfolio?

The unique feature of Ambit, good and clean, lies in the way they select their firms. They ensure to see the two qualities in the firm.

First, the firm should be reasonable based on capital allocation and qualitative improvement in financial metrics.

Secondly, the firm should be clean based on the quality of the accounts and corporate governance.

What is the idea behind Ambit good and clean portfolio?

The initial objective is to generate returns, while the big goal is to manage drawdowns as they believe in doing the latter successfully to achieve the former.

What is Ambit’s greatness framework?

Ambit’s greatness framework includes:

Investment

Conversion of investment to sales

Pricing discipline

Balance sheet discipline

Cash generation

This framework aims to look at the holistic and consistent growth for long-term wealth creation.

What is the time horizon and turnover?

The investment horizon is for 1-3 years and longer. Average turnover is 15-20%

Are Cash calls advisable for Ambit’s Good and Clean?

It is advisable not to take aggressive cash calls as it is a long-term investment horizon fund. And also for taxation point of view

What are the few features of Ambit Good & clean?

Few features are:

It is a mid-cap-oriented portfolio.

The ideal investment horizon of 3-5 years.

Growth at a reasonable valuation

What is the optimizing strategy of Ambit Good and Clean?

Good and Clean strategies are as follows:

A process-oriented approach– Ambit follows a pre-designed framework for assessing accounting quality and efficacy of capital allocation. Evaluation is then done using the bottom-up approach.

Long-term horizon and low churn- Investment for 3-5 years and even longer with annual churn not exceeding 15-20% in a year.

Low Drawdowns- The strategy aims for Long-term return generation and low drawdowns in periods of equity market decline

How does Ambit delivers good-adjusted returns?

Ambit delivers good-adjusted returns by:

Stringent quantitative filters

Experienced team and their deep research

Focus on earning growth and quality

Risk management.

Who is the current fund manager of Ambit’s good and clean portfolio?

Aishvarya Dadheech is director and fund manager of Ambit’s good and clean. He has an immense experience of twelve years. He has done his post-graduation in finance and holds a Chartered Accounted degree. Aishvarya is a perfect combination of smart and hard work

Where can we find the fee structure and commission rate of Ambit’s good and clean?

For details about the fee structure and commission rate, you can contact https://aifpms.com/contact/.

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