Abakkus Emerging Opportunities fund -1

5D Investment Process : Discover | Delve | Develop | Detail | Deliver

Key Attributes

Structure: Close Ended Category 3 AIF

Inception Date: 6th July 2019

Portfolio Construct: Long Only Indian Equities ,no derivatives used in the fund

Fund Manager Name: Aman Chowhan

Fund Manager Experience: 19 years

Fund Manager Qualification: MBA – KJ Somaiya Institute of Management Studies and Research

Portfolio Construct

  1. 15:15:15 Rule – Invest in companies with : Greater than 15% ROE | Greater than 15% Earnings Growth | PE Ratio of less than 15
  2. Choose companies that have less than 5000 crore market cap
  3. Holding period of 3-4 years
  4. Strategy will pursue 2& 3 rd player in the industry but with significant discount to leader
  5. Diversified portfolio of 30-40 companies , single stock exposure of maximum 10% and maximum sector exposure of 30%
  6. Anchor investor in select IPOs
  7. No unlisted stocks to maintain liquidity

Portfolio Strategy

  1. New Themes Start Small: India is an emerging country and new sectors and themes emerge regularly, these sectors and companies in them begin small eventually gain scale and become large. This represents a huge opportunity if the right companies are chosen
  2. Near to medium term trends in smaller sectors: The investment management team tracks for cycles in smaller sectors through out the economy to identify the right companies
  3. Rerating as a driver for growth: Companies that might have seen rating contraction due to performance-based inconsistencies are likely to see significant re-rating once the market starts seeing stability in performance.
  4. Deep value: Due to market apathy and lack of near-term triggers companies trade much below intrinsic values, the fund managers look at companies that generate cash too to avoid value trap.
  5. Special Situation: Holding companies can trade at substantial discounts – companies that hold multiple business might see valuations de-rate due to few businesses doing bad, in a demerger situation value unlocking will see returns.
  6. Steady Cash Generating Companies: Companies generating good cash flows but limited by near-term growth opportunities .Cash flows being used to repay debt and thereby reduce EV ,cash flows being used for distribution including  dividends and/or buybacks, cash flows used for adding to business  opportunities by acquisitions, expansions. All these can add value to equity shareholders

Don’t Just Invest. Make an Informed Decision.