SUNDARAM SISOP

Concentrated Multi Cap Portfolio.

Key Attributes

Inception Date: 2 Feb 2010

Number of Stocks: 12-15

Fund Manager Name: Mr Madanagopal Ramu

Fund Manager Experience: Total Exp – 13 Years, With Sundaram – 8 Years

Fund Manager Qualification: Cost Accountant and has a Management degree from BIM Trichy.

Investment Objective

To generate capital appreciation across market cycles by investing in a concentrated set of high conviction stock.

Portfolio Strategy

1) Concentrated 15 Stocks portfolio of Long term compounding Stories

2) Companies that are maintaining 20% ROCE/ Self-Funded Models Lead by High visionary Leadership/ Across Sectors,

3) Motive is to generate decent returns with high quality companies and maintaining low beta stocks, which shows the low risk portfolio and less volatile as compare to the benchmark and betting on few sectors (Consumer Goods, Financial Services, Media Entertainment, Services and Auto Mobile) in which portfolio is overweight visa vis the benchmark “NIFTY 500”.

Investment Philosophy

The term which best describes SISOP is “Consistency”. The underlying investment philosophy since the inception of the strategy is to invest in businesses which deliver consistent earnings growth above 20%, supported by good cash conversion and asset light business model. In addition to earnings growth, it emphasizes on the businesses being managed by highly competent and visionary management.

• 3Q Quality Approach To Stock Selection

• Quality of Business – Pricing Power, Profitability, Growth, Brand Strength, Capital Intensity, Complexity of Business

• Quality of Management – Past Track Record, Management Bandwidth, Corporate Governance

• Quality of Financials – Capital Allocation, Leverage, Cash Flow Generation, Return on Capital


Investment Focus

• Concentrated portolio of upto 15 stocks

• Invests across market cap – “Multi Cap”

• Compounding Stories

   • Grow more than 1.5x nominal GDP growth
   • Potential to generate ~ 20% cash flow / earnings growth across market cycles
   • ROE: > 20%
   • Self-funded model – Growth through internal accruals.

• Companies should exhibit high Corporate Governance standards and have visionary leadership.

Don’t Just Invest. Make an Informed Decision.