360 One Multi Strategy Fund

Fund Type	Category III Alternative Investment Fund, Close Ended
Initial Drawdown	25% of the commitment amount
Subsequent Drawdown	15% of the commitment, payable bimonthly mandatorily through auto-debit required using NACH mandate
Redemption Frequency	Weekly
Benchmark	S&P BSE 500
Minimum Commitment Fees	Class A1 ₹ 1 to ₹ 5 crores (2.50% per annum) Class A2 ₹ 5 to ₹ 15 crores (2.25% per annum) Class A3 ₹ 15 crores to ₹ 25 crores (1.75% per annum) Class A4 ₹ 25 Crore and above (1.50% per annum)
Fund Manager	Aniruddha Sarkar
Fund Tenure	Up to 5 years from final closing date
Commitment Period	Up to 24 months from Final Closing, at the discretion of Investment Manager to extend by up to 6 months
Target size	INR 1,500 crore

• Theme Selection
  • Selection of different themes based on internal research, evaluation and macro-economic factors

• Advisor Selection
  
  • Appoint Advisors with strong track record for providing research and non-binding advice
    
  • Leverage 360 One group’s network to access the best advisors
    

• Portfolio Construction
  
  • Allocation across various themes by 360 One AMC investment team
  • Min allocation to a single theme: 20%
    
  • Max allocation to a single theme: 40%
    

• Ongoing Monitoring
  
  • Ongoing review of portfolio and regular rebalancing to capitalize on changing macro-economic conditions
    

Optimal Portfolio Selection

• Portfolio selection based on in-house expertise
• Disciplined investment implementation
• Diversification across market caps

Continuous Monitoring

• Allocation based on internal evaluation & change in macroeconomic outlook
• Ongoing portfolio evaluation by the highly experienced investment team

Flexibility

• Flexibility to modify allocations dynamically with market changes
• Cost effective as all changes are in same portfolio and not different schemes

360 One Multi Strategy fund aims to invest across three investment themes viz the multicap, large/mid cap and small-cap. This is category III closed-ended alternative investment and the minimum ticket size is rupees one crore.

Selection Philosophy

• Clear and SustainableBusiness Model

Easy understandable business model catering to large market. Resilient over market cycles

• Alignment of Interest: Promoter Stake

Sizeable promoter’s stake in the company, adequate corporate governance, & quality of management

• Position vs Peer Group

Consistent growth rates of 12-20% CAGR; outperform industry peers by a wide margin

• High Operating Metrics

Return On Equity > 15%, Return on Invested Capital >10%, Debt to Equity < 0.5x and low earnings volatility

Valuation

• Growth at Reasonable Price
• Companies growing at minimum 12-20% CAGR both in revenue and earnings
• Trading at a reasonable valuations (PEG ratio close to 1x)

Margin of Safety

• Companies at prices which provide a margin of safety and have limited downside
• The difference between the intrinsic value of the stock and its buying price should be substantial to justify that we purchase it at the prevailing price
• Risk – Return Payoff
• The risk-return payoff should be favourable in the ratio of 1:3 for downside : upside

Investment Focus

With limited options to invest savings, flows into financial instruments will see exponential growth Demand from large middle class base from Tier-B cities and rural India to drive growth Well capitalized Financial Institutions to take advantage of the cyclical turnaround opportunity