360 One Multicap PMS

• • 360 One Multi Cap PMS uses an intriguing and informative mechanism to dissect markets based on precisely this math, namely corporate earnings. This is known as the SCDV system, in which the entire listed market is divided into four quadrants based on the earnings profiles of the firms.
  • Seculars – PAT and ROE greater than 15%
  • Cyclicals – PAT greater than 15% and ROE less than 15%
  • Defensives – PAT less than 15%, ROE greater than 15%
  • Value traps – PAT and ROE are both less than 15%.

The strategy aims to generate long-term capital appreciation for investors through a portfolio of equity and equity-related securities. The approach is to invest in companies and sectors that are available at a substantial discount to their intrinsic value and have a clear earnings outlook. The portfolio takes a highly targeted position in stocks and tries strategically changing its allocation between sectors based on changes in the economic cycle.

The portfolio manager intends to meet the investment goals by

• Investing in an intense basket of 20-25 stocks, with a preference for large-cap stocks.
• Investing in stocks at a significant discount to their intrinsic value.
• Investing in stocks with predictable earnings.
• To generate Alpha, actively use sector spinning to align with changes in business cycles.
• Portfolio Managers must build their portfolios using the SCDV framework.

The investment strategy aims to create a long-term capital appreciation for investors through a portfolio of equity and equity-related securities. The investment strategy is to invest in a portfolio that adheres to the SCDV framework (Secular, Cyclical, Defensives, Value Trap).

A large part of the portfolio is invested in high-quality Secular growth companies with long-term compounding stories. The remainder of the portfolio is distributed to high-quality cyclical and defensives while avoiding value traps.

Even with a few stocks, portfolio management across these three quadrants allows us to increase diversification.

Secular Growth includes:

• Auto and Auto ancillaries,
• Private retail banks,
• Non-banking financial co.
• Insurance,
• Consumer discretionary and
• Retail.

Cyclical Growth includes:

• Capital Goods,
• Private Corp Banks,
• Cement,
• Metals,
• Oil & Gas Downstream,
• Infrastructure and
• Logistics.

Defensive Growth includes:

• Consumer staples,
• IT services,
• Healthcare and
• Media.

Value Traps include:

• PSU banks,
• Telecom,
• Utilities and power and
• Oil & gas – upstream.

Secular Growth handles core portfolio work. Critical Growth and Defensive Growth keep the tactical allocation process smooth. On the other hand, Value Traps are used to avoid allocation.

Low Beta PMS