Emkay Capital Builder Strategy
Investment Objective
Emkay Capital Builder is a multi-cap portfolio, that aims to identify companies with the potential to build wealth over an investment horizon of 3-5+ years.
The strategy considers top 600 companies (by market cap) as its universe and is guided by a well-defined portfolio construction discipline to filter stocks based on strict limits and a three-pronged investment process.
Investment Objective
Emkay Capital Builder is a multi-cap portfolio, that aims to identify companies with the potential to build wealth over an investment horizon of 3-5+ years.
The strategy considers the top 600 companies (by market cap) as its universe and is guided by a well-defined portfolio construction discipline to filter stocks based on strict limits and a three-pronged investment process.
Three-Pronged Investment Process
Earnings Growth
E-Qual Risk Framework
Purchase Price Discipline
Investment Framework
Long Term Investing Buy to Hold
- Low churn
- Be patient before & after investing
Conviction & Patience
Focus on absolute Returns and high emphasis on Purchase Price
Compounding is the Name of the Game
Winning sustainable wealth
Do your own Homework
Research backed & process oriented investments
Focused Portfolio
Allocation Discipline to avoid concentration risk
Avoid Mistakes
- Avoid unscrupulous promoters/ management
- Businesses getting irrelevant
- Highly leveraged companies
- Euphoric valuation
Investment Theme
Using a bottom-up stock-picking strategy, the Emkay Capital Builder portfolio aims to consistently identify businesses offering robust growth prospects and intrinsic value at a reasonable price. We employ in-house tools like E-Qual Risk (India’s first governance-dedicated stock-picking model) to mitigate risks related to management quality.
Sector Allocation
Emkay Capital Builder uses a multi-cap strategy with 20-25 stocks. The sectoral holdings of Capital Builder, as on 31st October, 2020, are:
The portfolio has had zero blowouts since inception which can largely be attributed to the intensive processes laid out in the E-Qual Risk module that make it nearly impossible for any evasive business to make its way into the fund. The Capital Builder portfolio has given returns of 12.3% since inception (as on 31st October, 2020).
Performance Update
| Since Inception | |
|---|---|
| TWRR | 12.3 |
| Nifty 500 | 10.7 |
| Outperformance (TWRR v/s benchmark) | 1.6 |
Note: The portfolio returns are TWRR returns.
