Investing and long-term wealth growth are fundamental to our lives. They focus on high-quality firms that can generate better long-term growth in the search for exceptional investment opportunities. Rather than investors, they like to conceive of themselves as business owners. They think that risk management should be at the heart of every investing strategy, and they aspire to achieve better risk-adjusted returns.
|Type of Fund||Multicap Portfolio|
|Portfolio Strategy||Long Term Buy & Hold|
|Number of Stocks||15-20 Bluechip Stocks|
|Investment Horizon||3 Years|
Renaissance Alpha Portfolio is a Multicap portfolio which focuses on superior absolute returns over the investment horizon of 3–5 years. It’s a low risk, high quality growth portfolio which delivers superior risk adjusted returns over the medium to long term. The portfolio has stringent filters for stock selection. As a result, the portfolio strikes a right balance between risk, growth, quality and valuation thus ensuring healthy alpha generation. Key portfolio attributes are:
- High Management Quality and Business Leadership
- Companies with Low Leverage and High ROEs.
- Superior PAT growth and FCF generation.
4 Pillars of Investment
Identify companies with sustainable earnings growth potential, credible management & long-term growth prospects
Analyze fundamentals of the company and industry to assess attractive segments within our universe
Portfolio is constructed bottom-up based on careful analysis and taking advantage of volatility, crisis, or unusual circumstances
In order to ensure investment objectives are met, ensure effective governance, active involvement and timely intervention
Focused on investing in Quality business that can deliver sustainable high growth over medium term to long term. Be selective in cyclical business. Risk Management is central to Investment Management.
Sustainable Quality Growth At Reasonable Price (SQGARP)T
Companies with sustainable and durable business models
Superior quality businesses as demonstrated by Competitive edge, Pricing power, ROE, FCF. Good quality and competent management teams
Business that can deliver superior growth over medium to long term
Ability to invest at reasonable valuations. Fair value approach to valuations. Focus on economic value of business.
Experienced investment professionals to help limit investment universe to carefully select good quality businesses
Monitor overall portfolio volatility and control risk class/sector/stock exposures as needed
Risk Management Strategy
The fund managers will strive to manage the following risks:
- Description: Investing in unsustainable/ weak companies
- Strategy: Experienced investment professionals to help limit investment universe to carefully selected high quality business
- Description: Overpaying for a company
- Strategy: Detailed in-house research to enable “Fair Value” based investment recommendations
- Description: Inability for management to drive growth
- Strategy: Assess quality of team and their focus on creating shareholder value
- Description: Overleverage or dependent on a critical revenue stream
- Strategy: Monitor overall financial risk and leverage of investee company
- Description: Risk due to company or sector-specific event
- Strategy: Effective and timely response to uncertain events enabled through in-depth understanding of businesses
About The Fund Manager
Pankaj has over 25 years of experience in Indian Equities with excellent performance track record. He has worked with Motilal Oswal, Rare Enterprise (largest Principal Investor in India), Merrill Lynch & Axis AMC. His last stint was with Axis AMC as CIO, Equities managing and overseeing equity AUM of $ 3bn. Axis AMC emerged as the fastest growing Asset Management Company in India during 5 years from 2011-2016. Pankaj has managed funds across Large Cap/ Mid Cap/ Small Cap with stellar track record of performance across funds.
Several accolades to his credit:
- Recognized by Outlook Money as a Leading Fund Manager with 5 years of track record of consistent performance in the year 2015
- Best Fund Manager – Runner-Up for Axis Mid Cap Fund in 2014 by Outlook Money (from over 40 funds)
- Axis Small Cap Fund – Best performing Small Cap fund in 2014 with 84.3% returns
Stock Selection Process
Companies with Market Cap >3000cr
Companies having ROE >15%
Good quality and competent management teams
PAT growth of 15-20% over next five years
Reasonable Margin of Safety
Debt/Equity < 0.5
Top Sectoral Weights
|Banks & Finance||33.61%|
|IT Consulting & Software||11.13%|
|Capital Goods & Engineering||10.35%|
|Oil & Gas||5.42%|
Market Capital Allocation
|Larsen & Toubro||5.23%|
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.