Investment Objective
Emkay Emerging Stars Funds was a Category III Alternative Investment Fund (AIF) seeking to generate long term capital appreciation for investors from a portfolio of equity and equity-related securities. The investment universe of this 5-year closed-ended fund comprised stocks from the top 300 to 1,000 companies ranked by market capitalisation.
Our Emkay Emerging Stars Fund (Category III AIF) awarded best Post-Covid AIF Performance award
-by PMS AIF WORLD
Investment Framework
Philosophy
- Create Wealth through Research
- Invest for the Long-term
- Common-sense Investing
- No Opportunity : Preserve Cash Integrity, Transparency
Process
- Quality Check : E-Qual
- Bottom-up Research : Track Record, Scalability, Profitability, Cash Flow
- Focused Portfolio : Avoid Concentration
Mindset
- Value-based growth Investing : Patient, Risk Averse and Favourable Risk-reward
- Absolute Returns : Allocation Discipline
- Avoid Fear of Missing Out : Purchase Price Discipline
Investment Framework
Investment Theme
Using a bottom-up stock picking methodology, we filtered out companies that delivered superior RoE (Return on Equity) and RoCE (Return on Capital Employed) growth and had high PE multiples. Also, these were the companies that delivered superior CAGR growth (Net Sales, EBITDA, and PAT) as compared to companies under the BSE 500 universe.
We further filtered out stocks from the screening process by using our proprietary methodologies like E-Qual, a governance dedicated stock-picking model that allowed us to mitigate risks related to management quality.
To know more about Emkay’s AIF products and to receive the latest market outlook and guidance, talk to an Investment Counsellor at EIML.
Emkay Capital Builder uses a multi-cap strategy with 20-25 stocks. The top-5 sectoral holdings of Capital Builder, as on February 29, 2020, are:
| Sector | Percentage |
|---|---|
| Financial Services | 32.74 |
| Pharma | 17.98 |
| Auto & Auto Ancillary | 11.08 |
| Real Estate | 10.46 |
| Oil & Gas | 6.68 |
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 13.5% since inception (as on February 29, 2020). Click here to download the product brochure, performance data, and updates.
To know more about the Emkay Capital Builder portfolio and to receive the latest market outlook and guidance, talk to an Investment Counsellor at EIML.