Investment objective:
To generate long term risk adjusted returns.
Philosophy & Strategy:
A High Risk High Return oriented strategy where capital allocation is as important as stock selection and which aims at generating long term return by investing in companies with Market Capitalisation of 4000 crores and above, using data intensive research driven investment approach, to identify companies based on various parameters such as growth, valuation, quality earning and balance sheet health.
INVESTMENT PROCESS
Stock Selection:
- Market Capitalization Cut-off: INR 4,000
Crores - Investible stocks have to pass a stringent system of eliminating value destroying factors & are sometimes vetoed based on risk and fundamental forensic analysis
- Over 50 Quantified fundamental parameters and their combinations used for screening of investible universe
- Highest Ranked Stocks based on points filtered
Capital Allocation :
- Portfolio on an average holds 25 stocks-30 stocks
- Weight per stock may range from 3% to 6% @cost, exceptional stocks may get an allocation of 10% @cost
- Ranking system optimizes stock to be held in the portfolio and creates
allocation for the same
Risk Management:
- Prohibitive Risk
• Quality Filters
• Negative Marking for Unfavorable factors
such as Balance Sheet ratios - Participative Risk / Exit Strategy
• Daily change in Rank / Score of Individual
Stock (Using Fundamental Data)
• Draw-Down / CAGR nonperformer
• Multiple rules based on above scenarios - Operational risk minimized using automation of
processes