Motilal Oswal Focussed Midcap Strategy

Rakesh Tarway -Fund Manager-AIF

Mr. Tarway has 17 years of experience as an analyst and head of research in the equities market. He served as an analyst and head of retail products at MOTILAL OSWAL Securities Ltd. He was the chief of research for reliance securities ltd before joining MOTILAL OSWAL assets management business ltd.

Mr. Shrey Loonker -Sr. Vice President as Fund Manager for Value PMS

Shrey Loonker has been promoted to Senior Vice President and Fund Manager for Value PMS. Shrey brings over 13 years of experience to the position. Shrey worked with Motilal in Global Taxation Advisory Services and Reliance AMC – Mumbai (11 years) as Fund Manager – Reliance Banking Funds before joining Ernst & Young Pv. Shrey has a degree in Chartered Accountancy from the Institute of Chartered Accountants of India and a CFA charter from the CFA Institute, USA.

Raamdeo Agrawal-Chairman, Motilal Oswal Financial Services Limited (MOFSL)

Raamdeo Agrawal is the chairman and co-founder of Motilal Oswal Financial Services Ltd. He is known as a renowned value investor who believes in the power of compounding. In 2019, he was among the list of billionaires according to Forbes, with a net worth of $1 billion in 2018.Raamdeo was born and brought up in the village of Chattisgarh. He is a man with dignity and discipline. Later he moved to Mumbai to study to become a Chartered Accountant. He wrote the book Corporate Numbers Games with Ram K P. Mriparia. Mr. Raamdeo also authored The Art Of Wealth Creation.

He maintained a consistent track record of the highest integrity in tax payments for five years from FY95-FY99 and thus received Rashtriya Samman Patra by the Central Board of Direct Taxes for the same. One would be glad to know that Raamdeo Agrawal considers Warren Buffett a mentor, and his investment strategy is exceptionally inspired by him.

Primary Investment universe: 101–400 stocks, based on market capitalization, with a 20% weighted average of large-cap stocks at the portfolio level.

Maintaining Positions in Businesses with Relatively Less/Low Leverage Growth Outlook of 20%+ at Portfolio Level throughout FY20-23 with Portfolio level ROE of 15%+ Reversion to Mean – Invest in Businesses where Valuations Have Corrected in the Last 2 Years While They Have Maintained Their Earnings Profile.

Finding Winners: Finding Multibaggers and stocks in the winning category across the wider markets.

Little to no allocations to commodities and international cyclical due to sector agnosticism.

The allocation should be based on company convictions rather than solely on pricing.

Keep your stock price and profit targets active throughout the next 1, 2, and 3 years.

Price and time discrepancies should prompt purchasing and selling actions on the folio.

regular position reduction if price targets exceed timelines

If profits are on par with or ahead of schedule and stock prices are not reacting, positions are regularly added.

The Framework for Strategy

The company’s and management’s quality are high: stable consumer-facing companies with significant market potential and sustainable competitive advantages. Companies are run by competent management.

Earnings growth is fueled by changes in mix, price increases, volume expansion, and operational and financial leverage.

Longevity (of Quality and Growth): Measured by the company’s ability to remain relevant over the long term, hold onto its competitive edge, and accelerate growth.

Price: Reasonably priced with a large margin of safety, given the quality and development possibilities. Once equities have been found that satisfy their strict QGLP criteria, this targeted mid-cap fund strategy plans to Sit Tight. In concentrated stock portfolios, it adopts a long-term buy-and-hold strategy.