O3 Capital PMS

Multiple Strategies with Diversified Portfolios based on Value Style of Investing

Key Attributes

Number of Stocks :15-25

Fund Manager Name: – E A Sundaram

Fund Manager Experience: Sundaram holds an MBA degree from IIM, Ahmedabad

Fund Manager Qualification: PGDM Finance from IIM Kozhikode and Bachelor in Technology from National Institute of Technology, Hamirpur

Investment Objective

The investment objective is to achieve capital appreciation through investment in a diversified portfolio of strong businesses, purchased when the respective price of the stock is reasonable.

Portfolio Strategy

The investment strategy is to restrict the choice of companies that fulfill the following criteria:

  1. A track record of at least 15 years
  2. A minimum of Rs.5 billion in annual revenues
  3. Consistency in generating positive free cash flows
  4. Consistency in generating Return on capital of 20%

In addition, we look at the track record of the management in capital allocation decisions and governance issues, and the prospect of the company’s revenues and profits growing at a trajectory higher than industry’s average growth rate over the foreseeable future.

Such companies are purchased during times of temporary distress, or when the consensus in the market is that the earnings triggers are too distant in the future.  Only under such conditions do we get the share of a good company at reasonable valuations.

Don’t Just Invest. Make an Informed Decision.