Ashika India Alpha Fund

This is a high-conviction, long-only equity fund focused on discovering future leaders in India’s growth story through a disciplined, multi-cap, sector-agnostic approach.

Long only

Given our outlook on India’s financialisation and political economy, we believe a long only strategy will give us the highest returns over time while reducing our tax burden.

Equity Focus

Equities are likely to provide higher long-term total returns compared to fixed income, gold, and unlevered real estate or commodities.

No leverage

We like to sleep peacefully, and believe that so should you. We have no “get rich quick” schemes on offer.

Multi-Cap Specialisation

This fund is sector agnostic and market cap agnostic.

Concentrated Portfolio

True alpha can only be generated with deep research and understanding of potential future leaders. We maintain a portfolio of few companies which we diligently track and invest in for the long term.

Investment Strategy

India’s economy has huge growth potential in medium to long term, considering the Indian demographic profile, productivity gains with digital/tech adoption, and potential growth in per capita income driving consumption. The investment strategy for the Fund is sector-agnostic and market-cap agnostic with a key eye on seizing opportunities in services, manufacturing/production and consumption sector both from a growth and value perspective. Prima facie, looking at the current economic landscape and the demographic outlook, it is evident that digital/technology adoption, consumption/discretionary spending, talent outsourcing, export hub, shift from unorganized to organized sector, scale economics accelerated by PLI scheme, and formalisation of economy are some of the key structural tailwinds which will play as great investment themes both in manufacturing as well as service sector over the medium to long term.

The key premise on which the fund aims to invest is in select companies with able management, industry tailwinds & leadership, scalable business model with durable competitive advantage and generating superior return on capital employed.

The fund aims to maximize risk-adjusted returns over the mid & long-term through the use of a longonly or long-biased strategy implemented via a portfolio that is mostly constituent of equity and equity-related securities of predominantly India-domiciled issuers.

The fund would use bottoms-up approach in investing with a keen interest in growth-oriented companies with reasonable value and a superior return on capital invested vis-a-vis cost of capital. The EVA spread is to ensure the durability of the moat and compounding of investment. The fund aims to focus on investing in selected businesses with a 3-5 year perspective and generate superior risk adjusted return. This fund will be sector agnostic and market cap agnostic.

Qualitative Analysis

Research is conducted by analysing past track records, key capabilities, governance practices, management, media interactions, and many more.

Quantitative Analysis

Companies are evaluated based on financial parameters and performance metrics.

Deep Dive

Detailed due diligence is performed on shortlisted investment opportunities.

Investment Decision & Allocation

The Investment Manager approves or rejects investments and allocates funds accordingly.

Review

Ongoing monitoring and evaluation of portfolio investments are carried out by the Investment Manager.