Motilal Oswal Founders Portfolio – MultiCap PMS

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About Motilal Oswal Asset Management

In 1987, Motilal Oswal Financial Services Ltd. (MOFSL) was established as a little sub-broking operation, with just 2 persons in charge. Their growth into an 8600+ member team has been made possible by Their commitment to putting the needs of Their customers first, ethical and transparent business practices, professionalism, research-based value investment, and the use of cutting-edge technology.

Motilal Oswal has a well-diversified financial services company that offers a variety of financial goods and services, including private wealth, retail and institutional broking, asset management, investment banking, private equity, commodity trading, currency trading, and home financing. Retail clients (including High Net Worth Individuals), mutual funds, overseas institutional investors, financial institutions, and corporate clients make up Their diverse clientele. 

Their main office is in Mumbai, and as of September 2021, Their network included 550 cities and towns, with 2500+ Business Locations run by us, Their Business Partners, and more than 34,000,000+ clients. Research serves as the firm basis on which MOFSL recommendations are founded. They spend about 10% of Their sales on equities research, and they recruit and develop the top professionals to serve as Their advisers. We now have around 25 research analysts investigating over 250 businesses across 20 industries. 

The media has extensively covered Motilal Oswal’s research reports from a fundamental, technical, and derivatives research standpoint. The scores and ranks in the AsiaMoney Brokers Poll have risen over the years, reflecting Their constant efforts to produce high-quality equities analysis. Additionally, They were admitted into the “Hall of Fame” at the 10th Financial Advisory Awards 2019. They were recognized as the Best Performing Equity Broker (National) at the CNBC TV18 Financial Advisor Awards for five years running.

Two-Fold Investment Objective

Capital Preservation

By focus on quality business, run by great management, bought at reasonable price & applying an appropriate risk management framework

Capital Appreciation

By participating in sectors and themes favoured by strong economic tailwinds & a high probability of success in the medium term

The QGLP Objective

  • High ROE/RoCE
  • Earning Growth
  • PEG Framework
  • Skin in The Game

ADDITIONAL CAPITAL PRESERVATION VIA PROGRESSIVE RISK MANAGEMENT

Stock Weightage Rationalization

Minimum Exposure Criteria as well as cap on maximum weights relative to benchmark

Profit Taking Framework

Link to Returns/Portfolio weight levels

Diversification Strategy

Cap on maximum number of stocks in the portfolio

Stop Loss Mechanism

Quarterly rolling triggers relative to benchmark

Implementing Limited Turnover

Churning out stocks to book profits or stocks with lower conviction

Investment Framework

Top 500

By market Cap. Current range from 5kCr to 11 Lakh Cr.

300-320 – Min 26% Promoter Holding

Including companies significant ESOPs/ shares with management professionals. Exception for Financials.

260-280 – PBT>100

Minimum PBT of INR 100 Crs

150-170 – Capital Efficiency

Quality of Business, Minimum Cycle ROCE of 15%

70-90 – QGLP

Corporate Governance, Management Quality-Vision, Execution, Succession Planning and Capital Allocation Decisions

<20-30 – Earnings Expectations

Companies with Min Additional Expected Earnings 3-5Y Growth of 3% Over Benchmark, Available at Relatively Attractive Valuation

Insights From The Investment Framework

Bottom-line growth

Promoter Driven: Highest Growth rates

PSUs: Underperform the promoter-driven companies

MNCs: Steady but lower growth than promoter-driven companies

Capital Efficiency

Promoter Driven: High Growth coupled with strong capital efficiency

PSUs: Good efficiency ratios; although much lower growth

MNCs: High capital efficiency

Alignment of Interest

Promoter Driven: Promoter’s skin in the game

PSUs: Social priorities Low-floating market cap

MNCs: Probability of agency issues

Price Performance

Promoter Driven: Largest wealth generated

PSUs: Lower than promoter driven

MNCs: Steady growth in wealth

Sector/Industries

Promoter Driven: Value-creating business areas, innovation led, intellectual property rich businesses

PSUs: Natural resources, Commodities, Power and Energy necessary for the growth of the nation

MNCs: Pharma, FMCG, Automobile

Decision-Making

Promoter Driven: Speedy and Dynamic

PSUs: Over-regulated/bureaucratic and hence could often lack speed, tends to be rigid

MNCs: Usually driven by parent company priorities

Business Environment

Promoter Driven: Competitive environment; often results in more efficiency

PSUs: Natural monopolies in many sectors they operate

MNCs: Often satellite operations of parent companies abroad

Corporate Governance

Promoter Driven: Improving with emphasis on independent professional boards

PSUs: Governmental practices

MNCs: Overall good governance

About Fund Manager

Vaibhav Agrawal

  • Vaibhav Agrawal is currently managing ~2000 crs AUM at Motilal Oswal Asset Management across alternate products
  • He has also managed a proprietary PMS and has over a decade of experience in stock picking and generating index-beating returns.
  • He has worked as a ratings’ analyst at CRISIL and investment analyst at Motilal Oswal Asset Management.
  • He holds a Bachelor’s in Computer Science from the University of Pennsylvania and an MBA from London Business School.
Prateek Agrawal : Director – Investments

Prateek Agrawal_ASK Investment

Prateek has more than 28 years of extensive expertise in stock analysis and fund management. He formerly held the positions of Business Head and Chief Investment Officer at ASK Investment Managers before joining MOAMC. Prior to joining ASK, he held the positions of Head of Equities and Head of Research at SBI Capital Markets for BoI AXA Mutual Fund and BNP Paribas Mutual Fund. Prateek will oversee Business & Investment Strategy at Motilal Oswal AMC. Prateek has an engineering degree from NIT Rourkela and a postgraduate degree in finance and marketing from XIM-Bhubaneshwar.

Right To Win

QGLP

Documented investment philosophy used to identify over 190+ companies

Assets Under Management

Motilal Oswal AMC manages over INR 47,000 Cr of AUM across all funds

Vintage In Equity

20+ years of managing pure equity funds

Specialists

Six sister businesses helping with their expertise across capital markets, private equity, research, and distribution

Process Improvement

We are constantly striving to evolve and improve our processes with recently adding incremental risk framework

Successful Exits

Motilal Oswal AIF has delivered 4 successful exits with an average IRR of 16.3%

Wealth Creation Study

27 wealth creation studies adding value to our equity experience

Skin in The Game

Our conviction exemplified by prop AUM of INR4,000 Crs across funds

Promoter-Driven Companies - Improving Their Share in Broader Market Capitalization

Year 2012-13
2021-23
Inference
No. Of Companies in Nifty 500 306 322 Promoter-driven companies increased from 306-322 in the NIFTY 500 List
% of market Cap. (Top 500)
50% 69% The % of promoter-driven companies market cap on the list increased from 50 to 70% in 9 years
Avg. Market Cap. ($ bn)
1.8 5.8 Promoter-driven companies average market cap increased 3x in 9 years in the NIFTY 500 implying higher price rally

The Founders of Motilal Oswal Group

  • From 2 people to 10,000+ members and Rs 110 billion group, MOFSL was founded in 1987 as a small sub-broking unit
  • Focus on customer-first attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled us to blossom into an over 8000 member team.
  • Well-diversified, financial services company offering a range of financial products and services.
  • Focus on wealth creation for all its customers, such as institutional clients, HNWIs and retail customers.
  • Network spread over 550 cities comprising 2,500+ business locations operated by our business partners and us with 3.2 MN+ total registered customers as of September 2022
  • Market Cap of 10,226 Cr, Revenue of over 4,200 Cr

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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.