Kotak India Renaissance Fund-I

• Over 20 years of fund management experience may be found at Kotak Mahindra Asset Management Company (KMAMC). In December 1998, it began operating. As of March 31, 2022, KMAMC ranked as the fifth-largest fund firm in India in terms of average quarterly AUM.
• One of the first few private companies in India to be certified to administer pension funds
• Providing solutions to clients in other countries for more than 15 years
• The Monetary Authority of Singapore regulates Kotak Mahindra Asset Management (Singapore) Pte. Ltd., which is also a Registered Investment Advisor with the SEC in the United States.

With a focus on India and a worldwide presence, Team Kotak is dedicated to offering investors worldwide investment management services of the highest caliber.

• ‘India-Only’ manager with strong ties to one of the biggest private banks, extensive network
• Worldwide presence and a wealth of expertise in managing capital across asset classes.
• 20 years of expertise managing assets for customers that are based overseas
• Large teams present on the ground to ensure comprehensive and wide-ranging research coverage
• A cautious, institutional investment strategy combined with effective risk management
• Solid knowledge of Indian corporate governance frameworks
• Successful asset management firm with over $50.46 in total assets under management
• Offshore fund structures that are knowledgeable about global legislation

Practically speaking, it is harder to know what is good than what is terrible. Therefore, Kotak first concentrate on eliminating “poor” along the following 10 categories before deciding between the “cannot be rejected on any factor.” Avoid corporations with inferior traits and poorly controlled businesses.

They are seeking businesses with the following qualities:

• Good theme
• Large market opportunity
• Favorable industry dynamics
• Low potential for disruption
• Sustainable competitive advantage
• Strong management/background/strategy/growth
• Strong corporate governance & Execution
• Superior return on incremental Capital
• Medium-term positive triggers
• Reasonable Valuations

• Big Getting Bigger, Strong Getting Stronger
• Revival of Ind Manufacturing & Private
• Real Estate & Home Improvement
• Exports Opportunity
• Digitization
• Financialization

• Listed & traded in India: ~4866 stocks
• Market Cap of > Rs 1500 crs: 861 stocks
• Under research coverage: 437 stocks
• Businesses will profit from increased consumer discretionary spending, massive infrastructure investments, and a recovery in GDP. It will benefit businesses with minimal fixed costs, low leverage, and robust balance sheets.
• ~ 25-40 Stock Ideas based on BMV

• An analyst runs exemplary portfolios. The sector model portfolio.
• Calls for capitalization Internal algorithmic guidance for making allocation recommendations for large-and mid-cap stocks
• Sectors
• Interaction with industrial participants in the sector
• Discussions with sector experts at brokerage houses on a regular basis
• There are typically 8 to 12 management meetings per analyst or fund manager per month.

Stocks:

• Investee company updates every three months
• Businesses with direct coverage receive at least two visits per year
• At least once a year, meet with the senior management.

Reuters Starmine

• All sell-side research is available.
• Choose the most competent sell-side analyst at the stock level

Objective

Although the Fund will diversify across market caps, it will lean toward mid- and small-cap investments.

Stock Holdings

25 to 40 stocks, chosen from the bottom up

Risk Mitigation 

Emphasis on free cash flows and management quality

Flexibility

Unconstrained w.r.t sector

• Big Getting Bigger, Strong Getting Stronge
• Revival of Industrial Manufacturing & Private sector
• Exports Opportunity
• Real Estate & Home Improvement
• Digitization
• Financialization

• Consumer Goods: 23%
• Industrial Manufacturing: 17%
• Industrial Manufacturing: 14%
• Pharma: 10%
• Information Technology: 7%
• Chemicals: 5%
• Cement & Cement Products: 6%
• Consumer Services: 4%
• Automobile: 4%
• Metals: 3%
• Fertilisers & Pesticides: 2%
• Construction: 2%
• Cash: 3%