MOTILAL OSWAL Value Strategy
The strategy aims to benefit from the long term compounding effect on investments done in good businesses, run by great business managers for superior wealth creation.
Motilal Value Strategy is a large cap biased focused flagship portfolio of Motilal Oswal. It has 17 Years of track record, and so has a memory of its own. It has experienced all types of market phases from 2004 to 2007 mega bull run to 2008 global financial crises, and then from 2014 to 2017 of new govt bull period to an infectious year of 2020 when despite crises, markets hit all time high and showed a swing of 40% fall and 70% rise over 8 months.
QRC : Quality, Risk, Consistency
NOTE: QRC calculations are done using Nifty 50 index, and data as of 30th Oct, 2020.
PORTFOLIO : Stocks / Sectors / Market Cap Allocation
Portfolio is a blend of businesses added with a vision of longevity aimed at long-term wealth creation. Here is a lens to understand how the portfolio is placed in the context of the current scenario.
- Immunity: Dr Reddy, IPCA, Glaxo
- In Home: HUL, Jubilant, Bharti
- Independence: HDFC Life, Max Financial, Maruti, SBI Cards
(Together – 49%)
- Reforms ( IBC, GST, RERA ): L&T, Thermax, ICICI bank, Axis Bank – 19%
- Value Migration: HDFC Bank, Kotak Bank, AU Bank, Muthoot Finance, HCL Tech – 25%
- Asset Moat: Petronet LNG, TI India – 6%
NOTE: Data as of 30th Oct 2020
PERFORMANCE : Returns Over Benchmark
Since Inception Value Strategy has delivered a CAGR of 19.60% vs. Nifty 50 TRI returns of 16.72%, an outperformance of 2.88% (CAGR).
NOTE : Performance data as of Nov 2020
PHILOSOPHY : QGLP (Quality, Growth, Longevity, Price)
Continue the legacy of identifying multi-baggers within the QGLP framework. Pioneers of Quality Investing – Powered by application of new learnings.
Quality
Growth
Longevity
Price
QGLP which is the core investment framework followed by Motilal Oswal, has evolved over time, with new learning leading to following refinements to add to the discipline over discretion.
- Trimming portfolio winners at regular intervals, if price targets run ahead of timelines.
- Maximum buying price to be diligently employed.
- Maintain active targets of profits and prices on stocks with 1 to 3 years view. Stringent due diligence and prompt action on laggards with a greater role of the investment committee.
- Mismatch of price and timelines to lead to action on both sides – selling and buying.
- Revised selling criterion to include the relative underperformance in the sector, and material fall in stock price
- Regular addition in positions if profits are inline/ahead of times and stock prices not responding.
PEOPLE : Portfolio Manager, Management, Team
Raamdeo Agrawal, Chairman, MOAMC
Investment Mentor
- Raamdeo Agrawal is the Co-Founder of Motilal Oswal Financial Services Limited (MOFSL).
- As Chairman of Motilal Oswal Asset Management Company, he has been instrumental in evolving the investment management philosophy and framework.
- He is on the National Committee on Capital Markets of the Confederation of Indian Industry (CII), and is the recipient of “Rashtriya Samman Patra” awarded by the Government of India.
- He has also featured on ‘Wizards of Dalal Street’ on CNBC. Research and stock picking are his passions which are reflected in the book “Corporate Numbers Game” that he co-authored in 1986 along with Ram K Piparia.
- He has also authored the Art of Wealth Creation, which compiles insights from 21 years of his Annual ‘Wealth Creation Studies’.
- Raamdeo Agrawal is an Associate of the Institute of Chartered Accountants of India.
Shrey Loonker, Senior Vice President
Portfolio Manager
- Shey Loonker is currently working as Senior Vice President with Motilal Oswal AMC.
- Shrey has been managing the Value Strategy since October 2017 and also manages multi-cap AIF.
- He has over 15 years of experience in equity research and fund management.
- Shrey holds various post-graduate degrees including an CA and CFA (USA)
PRICE : Fixed and Variable Fee Options
Fixed Fee Option
- Management Fee: 2.5% p. a.
- Exit Load: 2% within 12 months of investment
- Other Operating Expenses: Custody Fee, Brokerage, Audit Fee Etc. ( Capped at 0.5% p. a )
Variable Fee Option
- Management Fee: 1.5% p. a
- Hurdle: 10% p. a
- Performance Fee: 15% with high watermark
- Exit Load: 2% within 12 months of investment
- Other Operating Expenses: Custody Fee, Brokerage, Audit Fee Etc ( Capped at 0.5% p. a )
The fee mentioned covers only Management fees, there are other operational fee components as well like custody fee, brokerage on sale/purchase, audit fee, etc. Do check detailed fees at the time of investment.
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