Investment Objective
The key objective of the Emkay GEMS portfolio is to achieve medium to long term capital appreciation by investing in 20 equi-weighted mid-cap stocks. The fund manager uses a buy and hold strategy while focusing on companies with wider economic moat and dominant position in their sector to deliver wealth creation.
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.
Investment Framework
Investment Theme
Emkay GEMS seeks to drive growth from enterprises and sectors which are slated to benefit from :
Value Migration
The framework tries to identify industries where value migration is underway and helps pick potential winners early.
Domestic Consumption
Companies that have the potential to benefit from the growth in GDP and the impact on domestic consumption-driven sectors.
Efficiency Outliers
Companies that are comparatively more efficient than their peers with respect to utilisation of assets, value-added products, return generated on the capital, etc.
The fund focuses on delivering risk-adjusted returns and avoids over-diversification. It offers low volatility, high liquidity, and low portfolio turnover. The quality filters keep out low-quality, high-risk companies, to minimise portfolio risk.
The fund managers employ the smart alpha approach to create an equi-weighted portfolio, thereby eliminating ‘allocation bias’.
Since this is a mid-cap portfolio, we also use the E-Qual Risk module to ensure that only best-governed companies make the cut into the investment universe.
Investment Theme
Emkay GEMS seeks to drive growth from enterprises and sectors which are slated to benefit from :
- Value Migration, i.e. the framework tries to identify industries where value migration is underway and helps pick potential winners early.
- Growth in Domestic Consumption, i.e. companies that have the potential to benefit from the growth in GDP and the impact on domestic consumption-driven sectors.
- Efficiency Outliers, i.e., companies that are comparatively more efficient than their peers with respect to utilisation of assets, value-added products, return generated on the capital, etc.
The fund focuses on delivering risk-adjusted returns and avoids over-diversification. It offers low volatility, high liquidity, and low portfolio turnover. The quality filters keep out low-quality, high-risk companies, to minimise portfolio risk.
The fund managers employ the smart alpha approach to create an equi-weighted portfolio, thereby eliminating ‘allocation bias’.
Since this is a mid-cap portfolio, we also use the E-Qual Risk module to ensure that only best-governed companies make the cut into the investment universe.
Investment Theme
Emkay GEMS seeks to drive growth from enterprises and sectors which are slated to benefit from :
- Value Migration, i.e. the framework tries to identify industries where value migration is underway and helps pick potential winners early.
- Growth in Domestic Consumption, i.e. companies that have the potential to benefit from the growth in GDP and the impact on domestic consumption-driven sectors.
- Efficiency Outliers, i.e., companies that are comparatively more efficient than their peers with respect to utilisation of assets, value-added products, return generated on the capital, etc.
The fund focuses on delivering risk-adjusted returns and avoids over-diversification. It offers low volatility, high liquidity, and low portfolio turnover. The quality filters keep out low-quality, high-risk companies, to minimise portfolio risk.
The fund managers employ the smart alpha approach to create an equi-weighted portfolio, thereby eliminating ‘allocation bias’.
Since this is a mid-cap portfolio, we also use the E-Qual Risk module to ensure that only best-governed companies make the cut into the investment universe.
Sector Allocation | Stocks | Performance
*As on 30th September 2021
| TOP 5 HOLDINGS | |
|---|---|
| SRF Ltd. | 8.9% |
| L&T Technology Services Ltd. | 8.0% |
| Jubilant FoodWorks Ltd. | 7.5% |
| Dr. Lal PathLabs Ltd. | 6.9% |
| PI Industries Ltd. | 6.4% |
*As on 30th September 2021
Back-tested Returns of Emkay GEMS
| CAGR | 16.51% | 10.88% | 5.64% |
|---|---|---|---|
| GEMS qualifiers | Benchmark | Outperformance |
| GEMS Qualifiers | |||
|---|---|---|---|
| CAGR | Min | Avg | Max |
| 3 Year | -4.64% | 17.38% | 34.24% |
| 5 Year | 9.09% | 18.79% | 25.68% |
| 7 Year | 12.70% | 18.78% | 29.84% |
| 10 Year | 15.91% | 18.68% | 24.94% |
*As on 31st December 2019 (YTD)
| Benchmark | |||
|---|---|---|---|
| CAGR | Min | Avg | Max |
| 3 Year | -3.05% | 10.66% | 27.22% |
| 5 Year | -1.56% | 11.73% | 19.97% |
| 7 Year | 4.58% | 11.56% | 20.01% |
| 10 Year | 8.67% | 11.55% | 16.95% |
Performance Update
*As on 30th September 2021
| Since Inception | |
|---|---|
| TWRR | 40.8 |
| Nifty Midcap 150 | 44.8 |
| Outperformance (TWRR v/s Benchmark) | -3.9 |
*As on 30th September 2021
