© 2017 Renaissance
In our Midcap Portfolio we focus on investing in businesses which have the potential to become a Large Cap in future. The objective is to buy businesses at an early stage in their lifecycle and thereby benefit from compounding effect in growth over a long period. Key portfolio attributes are:
- Companies with high growth; which is sustainable for a long period
- Focused on companies with business leadership
- Low mortality portfolio
Benchmark: Nifty Midcap 100
Our Opportunities Portfolio is a Large Cap biased portfolio. We have built a high quality concentrated portfolio of 10-15 stocks on best opportunity basis. Our portfolio companies are the market leaders in their respective spaces and operate in a moderate to high growth environment. The objective is to achieve superior risk adjusted return over medium to long term. Key portfolio attributes are:
- High quality growth not at the cost of increase in leverage
- Market share gain or expansion of addressable market
- High operating leverage leading to superior earnings growth
Benchmark: Nifty 200
In our Alpha portfolio we focus to deliver absolute returns. Our strategy involves building a Multi-Cap portfolio of about 5-10 stocks. There are strict threshold filters of parameters like return ratios, cash flows and debt profile to ensure high margin of safety. Key portfolio attributes are:
- High management quality and business leadership
- Low debt/ equity ratio and high ROEs.
- Superior PAT growth and FCF generation.