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SageOne Large Cap Portfolio
Fund Snapshot
| Year of Inception | 2020 |
| Number of Stocks | Around 20-25 |
| Investment Horizon | 3-10 Years |
| Fund Managers | Samit Vartak |
Fund Overview
With dynamic markets and increasing client demand for a LargeCap centred strategy, SageOne has been assessing a LargeCap strategy for investors to generate sustained and superior risk-adjusted returns at the lowest possible cost. However, there is a limited opportunity to outperform benchmark indexes using an actively managed LargeCap strategy because this market is highly researched and has few inefficiencies.
They backtested numerous strategies over the previous 19 years using intensive research efforts that lasted over six months to find the best risk-adjusted returns approach across market cycles. By combining the results with decades of fundamental study, we were able to create a ‘Passively Managed LargeCap Portfolio Strategy of 16 Best Businesses,’ which achieves the goal of providing stable and superior risk-adjusted returns at the lowest possible cost.
Investment Philosophy
Over an economic cycle, the goal of this focused portfolio is to beat benchmark indexes by at least 5% (annualised). This is accomplished by focusing on high-growth companies with a long-term competitive advantage and clean and professional management.
High Growth Businesses
We search for companies that increase their market share, representing a large amount of their profits growth. The company should have a long-term growth potential of more than 20% per year, and it should not require too much more share dilution (save for financial businesses) to accomplish such growth.
Clean and Competent Management
The most crucial factor in India is to avoid managements that are here to steal from investors, of whom there are many. Here, we have a “zero” tolerance policy and prefer to pass up a nice opportunity even if we have some reservations about the management’s honesty.
Sustainable Competitive Advantage
We search for companies with a long-term competitive advantage verified by market leadership in areas that are appealing in terms of long-term wealth development. Return on capital (ROCE) is an excellent measure of the management team’s competence and a company’s competitive edge. Typically, we want a sustainable ROCE and ROE of at least 20% accomplished without excessive indebtedness (debt).
