Key Features of the Investment Approach
Investment Objective:
ICICI Prudential PMS PIPE Strategy (the “PIPE Strategy”) aims to provide long-term capital appreciation and generate returns by investing predominantly in Mid and Small Cap segment of the market by having exposure in companies enjoying some economic moat; and/or undergoing special situations or in the midst of unfavourable business cycle.
Strategy: Equity
Basis for selection of securities as a part of investment approach: The Portfolio Manager under the Strategy predominantly invests in mid and small capitalisation companies which may be undergoing special situations or are in the midst of unfavourable business cycle.
The Proposition: Potential Sources of Alpha
1) Aim to invest in growth stories which seem sustainable
Potential of price appreciation backed by Earnings Per Share growth.
2) Aim to invest in companies with possibilities of demand explosion and margin expansions.
Expansion of revenue and profit growth rates surpasses historical averages leading to PE re-rating. Improves visibility and valuations leading to PE re-rating.
3) Buying businesses undergoing special situations, cyclicality and mispriced by market, now available at huge discount.
Aiming to provide margin of safety.
About the Strategy
The Portfolio Manager under the PIPE Strategy predominantly invests in mid and small capitalisation companies which may be undergoing special situations or are in the midst of unfavourable business cycle.
The Strategy may look to invest in companies which are fundamentally strong, and which may be considered to be one of the market leaders in their industries.
Top 15 Holdings*
| Company | % Assets |
|---|---|
| Sarda Energy and Minerals Ltd | 4.89 |
| MedPlus Health Services Ltd | 4.68 |
| Indian Bank | 4.31 |
| Nippon Life India Asset Management Ltd | 3.88 |
| Jindal Stainless Ltd | 3.82 |
| Godawari Power and Ispat Ltd | 3.60 |
| CEAT Ltd | 3.59 |
| Vardhman Textiles Ltd | 3.56 |
| Karur Vysya Bank Ltd | 3.19 |
| Repco Home Finance Ltd | 3.07 |
| Kalpataru Projects International Ltd | 2.98 |
| Motherson Sumi Wiring India Ltd | 2.85 |
| Usha Martin Ltd | 2.85 |
| Sobha Ltd | 2.82 |
| Gujarat Narmada Valley Fertilizers & Chemicals Ltd | 2.80 |
No. of Stocks
38
Top 5 Sectors (%)
48.53%
Top 10 Stocks (%)
38.59%
Top 5 Sectors (%)
Market Cap Break-up
Mid cap: 19.17%
Small cap: 80.83%
