ASK Indian Entrepreneur Portfolio

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About ASK

Leading asset and wealth management firm ASK Investment Managers Ltd (ASKIM) primarily serves the HNI and UHNI markets in India. One of the first businesses in India to get a licence for portfolio management services, our company is presently one of the biggest providers of discretionary equity portfolio management services. They’ve created India’s first AIF with digital client onboarding, a paperless and simple procedure, and were the first Portfolio Management Company to establish operations in GIFT city for foreign investors, among other recent industry first achievements.

Their current clients include HNIs, Institutions, Pension Funds, Endowments, SWFs, Family Offices and Multi-Managers.

Fund Snapshot

Fund Type Large Cap PMS
Inception Date Apr 2023
Number of Stocks 15-20

Fund Overview

The portfolio makes investments in Outstanding Indian businesspeople who have enough stake in the enterprise and who have shown excellent standards in terms of governance, vision, execution, wisdom, capital allocation, and capital distribution. They manage companies with some of the best long-term earnings growth.

  • Focus is on top-drawer earnings growth without capital dilution
  • High quality of business
  • Meaningfully large margin of safety
  • Size of opportunity remains at a high enough level and growing

The Strategy

  1. Identify large and growing business opportunities.
  2. Identify businesses with competitive advantage that are significant sized (min Rs.100cr of PBT) but not a large part of the opportunity: Enables growth from both market share gains and growth of the opportunity size and can sustain for multiple years.
  3. The quality of the business should be good to be able to fund strong growth through internal cash generation
  • They seek over 20% compounded growth from each business that They buy and target over 25% growth from the portfolio.
  • To fund this growth, the business RoCE should be over 25% so that growth can be funded and there are surpluses for dividend
  1. The management should have the drive and have skin in the game to deliver compounded growth period after period (uncompromised corporate governance is a must)
  • Hence, invest into businesses with an identifiable business house at helm with a minimum 25% stake
  1. They seek to identify such businesses at a reasonable discount to value and stay invested for a length of time and make money as EPS compounds

Investment Approach Objective

ASK Indian Entrepreneur Portfolio (ASK IEP) invests in entrepreneurially driven and family-owned businesses; listed on the Indian stock markets, for compounding gains over the medium to long term.

Key Investment Objectives and Attributes

Key investment objectives

  • Capital preservation over a period of time
  • Capital appreciation over a period of time

Achieved through

  • Long-term investments in high-quality companies with strong growth prospects

Size of the Opportunity

  • Size of pond v/s size of fish
  • Dominance
  • Resilience
  • Liquidity

Quality of Business

  • High quality of business (Superior RoCE)
  • Strong moat. Impregnability
  • Sustainability
  • Key pivot of strong wealth creation

Earnings Growth

  • Quantum
  • Consistency
  • Durability
  • Predating (Early v/s Later)
  • Compounding power

Value

  • Favourable Price-Value Gap
  • Margin of safety

Sector Contribution to Portfolio Return

Top Contributors – Last 3 Months

Sector Avg. Weight Contribution to Portfolio Return (%)
Financials 28.0 2.6
Infrastructure and Engineering 8.8 0.5
Chemicals 7.4 0.3
Automobile 3.0 0.2

Top Contributors – Last 1 Year

Sector Avg. Weight Contribution to Portfolio Return (%)
Financials 27.5 -0.1
Infrastructure and Engineering 10.0 -0.4
Chemicals 8.2 -0.5
Automobile 3.1 -1.0

Top 10 Holdings

Top 10 Holdings Allocation (%)
Bajaj Finance LTD 7.3
Bajaj Finserv LTD 6.7
APL Apollo Tubes LTD 6.3
Havells India LTD 5.4
Au Small Finance Bank LTD 5.2
Patanjali Foods Limited 5.0
Cholamandalam Investment LTD 5.0
P I Industries LTD 5.0
Astral Poly Technik LTD 4.9
Reliance Industries LTD 4.4

Top Sector Weightage

Top Sector Weights Allocation (%)
NBFC 12.3
Retail 10.8
Banks 8.7
Consumer durables 8.0
Pharma 8.0
Insurance 6.7
Pipes 6.3
FMCG 5.0

The Investment Approach

  • Identify large and growing business opportunities.
  • Identify businesses with the competitive advantage that are significantly sized (min Rs.100cr of PBT): Enables growth from both market share gains and growth of the opportunity size and can sustain for multiple years.
  • The quality of the business should be good to be able to fund strong growth through internal cash generation
    • They seek over 20% compounded growth from each business that they buy and target over 25%* growth from the portfolio.
    • To fund this growth, the business RoCE should be over 25%* so that growth can be funded and there are surpluses for dividend.
  • The management should have the drive and skin in the game to deliver compounded growth period after period (uncompromised corporate governance is a must)
    • Hence, invest in businesses with an identifiable business house at the helm with a minimum 25% stake.
  • They seek to identify such businesses at a reasonable discount to value and stay invested for a length of time and make money as EPS compounds.

About Fund Manager

Mr. Sumit Jain: Portfolio Manager, ASK Investment Managers Pvt. Ltd.

Sumit Jain
Mr. Sumit Jain works for ASK Investment Managers Pvt. Ltd. as a Portfolio Manager. He has been with the firm for over ten years and is in charge of the Indian Entrepreneur Portfolio. In addition, he does business research inside the firm’s universe, seeking new investment prospects and monitoring their performance on a regular basis. He graduated from Mumbai University with a master’s degree in management science.

Meet the Team

Bharat Shah;Executive Director, ASK Group

Bharat Shah - Aif Pms Expert
Mr. Bharat Shah is the company’s Executive Director. He graduated from the University of Bombay with a bachelor’s degree in commerce and a postgraduat  diploma in management from the Indian Institute of Management in Calcutta. He is a member of the Indian Institute of Chartered Accountans as well as the Indian Institute of Cost and Works Accountants. He has been a member of the Board of Directors since 2008. He formerly worked at Birla Capital International AMC Limited and Asian Paints (India) Limited, and has over 24 years of investment management expertise

Nimesh Mehta:Director & Country Head – Business Development & Products

Webinar Invite ASK Nimesh Mehta
Nimesh Mehta is in charge of domestic business development for Equity PMS and Real Estate Funds, as well as overseas sales through the distribution network. He has over 20 years ofexperience in areas such as NBFCs, Equities, Asset Management, and Financial Services as a Commerce graduate, MBA, and Certified Financial Planner (CFP). He has worked for Motilal Oswal AMC, GE Money, and Godrej Appliances, and is the author of ‘Sales Booster’.

Investment Approach Research Methodology and Filtration

  • Top 500 as per market capitalization
  • Only companies > 25% promoter / family holding (except in very rare and fit cases)
  • Universe of entrepreneur and/or family-owned business = 306 cos
  • Condition of minimum PBT of INR 100 Cr* (USD 14 MN)
  • Subjective evaluation on management quality, their integrity, vision, past track record, execution, capital allocations and distribution skills, corporate governance standards etc
  • Quality of business (capital efficiency) – minimum RoCE of 25%
  • Two more filters for selection of stocks a) Minimum 20 to 25% earnings growth over the next 3 to 5 years without capital dilution and b) Price-Value gap (margin of safety) of 20%
  • ASK Indian Entrepreneur Portfolio
Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

ASK India Select Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 4-Jan-10
Multi Cap
(PMS)
2,808 Strategy 5.80 10.60 15.30 22.70 6.50 12.90 13.50 17.30 15.70
S&P BSE 500 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 12.80

ASK Indian Entrepreneur Portfolio

AMC Name: ASK Investment Managers Ltd Inc Date: 25-Jan-10
Multi Cap
(PMS)
18,959 Strategy 3.70 7.20 10.00 20.50 5.00 13.80 14.80 18.40 17.60
BSE 500-TRI 8.00 12.40 18.50 26.50 15.20 20.40 17.60 16.10 13.10

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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.