AlfAccurate Advisors India Opportunity Plan (AAA IOP) PMS

The investment objective of AlfAccurate Advisors India Opportunity Plan or AAA IOP PMS is to invest in listed companies with a combination of high growth stocks as well as value stocks. The primary focus is on capital protection with an aim to deliver attractive long term returns using disciplined, fundamental, research-driven approach.

AAA India Opportunity Plan (IOP) PMS plan is a portfolio of 40-60 companies which are market leaders with strong corporate governance and high growth potential with investment horizon of 3-5 years.

The investment strategy of AlfAccurate Advisors India Opportunity Plan or AAA IOP PMS can be laid out in the following parameters:

Investment Universe

• Diversification across industries
• Diversification across M-cap with focus on liquidity:
• Min 40% in large cap INR275 bn+
• Not more than 10% in one stock
• Max 35% in one sector
• Max 50% in the top 10 stocks
• Minimum investments in 30 stocks

Flexible investment style

Growth as well as Value with focus on Margin of Safety

Staggered Approach

• Portfolio exposure increased over a period
• Not averse to raise cash

Exit Strategy

• Close eye on earnings growth drivers
• Close eye on valuations
• Continuous monitoring of risk

Resilient Growth

The investment philosophy at AlfAccurate Advisors is to make high-conviction investments in companies with strong moats and high growth potential that offer solid long-term, risk-adjusted returns for investors.

AAA or AlfAccurate Advisor’s proprietary 3M approach has delivered superior risk-adjusted returns year after year and resulted in various multi-baggers such as Hitachi, Motherson Sumi and Whirlpool over the past 11 years. They invest in companies that have proven management, a strong balance sheet, superior earnings growth and exceptional corporate governance. Their radically resilient strategy is in accordance with this 3M approach of Market Size, Market Share, and Margin of Safety.

• Market Size:

Market size determines the size of the opportunity. They prefer companies that are targeting a large market size to generate exponential returns.

• Market Share:

They buy companies that are the leaders in their sector as they are the best positioned to navigate the upturn and downturn of the economy.

• Margin of Safety:

Price is what you pay. Value is what you get. They buy the companies which are available at reasonable valuations.

AAA or AlfAccurate Advisors follow a 4-step investment process:

Stock Identification

• Identify emerging trends and opportunities from a universe of 600 companies
• Filter approach – using variety of valuation parameters
• Focus on earnings, free cash flow, ROE, long term growth and profitability trends

Analysis & Decision making Process

• Initial screening
• Corporate meeting and detailed due diligence
• Identify sustainable competitive advantage

Portfolio Construction Monitoring & Nurturing

• Combination of Top Down and Bottom Up approach with a benchmark agnostic strategy to achieve Long term investment objective
• Continuous portfolio monitoring ensures prudent risk management
• Regular interaction to provide strategic inputs to strengthen systems, controls and CG in line with best practices

Exiting & Realizing Value

• Constant evaluation of valuation metrics to decide optimum return potential
• Intrinsic value V/s Current Market Price to evaluate Margin of Safety
• Change in underlying assumptions of investment thesis.

The team at AlfAccurate Advisors is committed to using a disciplined, fundamental, research-driven approach to identify well managed, shareholder-friendly companies with sound business models where they see a strong likelihood of continuing profitability and positive shareholder returns.

Their unique 4-Step Investment Process is predicated on 3M stock selection, prudent risk management and a disciplined exit strategy.

AlfAccurate Advisors is driven by a strong commitment to protect capital and create wealth for its clientele. It places paramount importance on meeting investors’ expectations, recognizing that generating superior returns is only one part of the equation. Investors also seek peace of mind amid market volatility. Hence, it aims to deliver consistent performance, instilling trust and confidence in its clients by safeguarding their hard-earned money”. The firm’s founders, including Rajesh Kothari, are actively involved as fund managers, ensuring consistency and stability in its investment approach. With Rajesh Kothari’s 27-plus years of experience in the Indian capital markets and a combined team experience of 75-plus years in Indian equity markets,

1. AlfAccurate Advisors possesses valuable insights into business cycles, sectors’ growth patterns, and varying valuation cycles.

2. AlfAccurate Advisors’ investment philosophy centers on ‘QuAgility’, a term coining ‘Quality plus Investment plus Agility’. This principle ensures a meticulous selection of market-leading businesses supported by robust management, governance, and financials.

3. Additionally, AlfAccurate Advisors maintains a disciplined exit strategy, ensuring a balance between valuation and growth considerations. This approach aligns with its overarching mission to protect capital while creating wealth for investors. Looking to the future, the firm envisions becoming the world’s most admired investment advisor, guided by a mission to deliver long-term superior risk-adjusted returns while offering a wow experience to all stakeholders.

4. AlfAccurate Advisors remains committed to offering a concise range of quality products that genuinely meet investors’ needs and aspirations.

• In 2023, AlfAccurate Advisors India Opportunities Portfolio or AAA IOP PMS was awarded Rank #2 as the Best PMS across all categories, on a 10Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, AlfAccurate Advisors India Opportunities Portfolio or AAA IOP PMS was awarded Rank #3 as the Best PMS across all categories, on a 10Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• AlfAccurate Advisors have won the Best PMS Provider – India Award by APAC Insider Business Awards.