ICICI Prudential PMS PIPE Strategy

The ICICI Prudential PMS PIPE PMS Strategy is designed with specific investment objectives & strategies:

1. To invest in growth-oriented narratives characterized by sustainability, potentially leading to price appreciation driven by Earnings Per Share growth.
2. To target companies with prospects of increased demand and improved margins, enhancing visibility and valuations that can result in PE re-rating.
3. To acquire businesses undergoing special situations, influenced by cyclicality or mispricing by the market, offering opportunities at a substantial discount and ensuring a margin of safety.

The overarching goal of the strategy of ICICI Prudential PIPE PMS Strategy to achieve long-term capital appreciation and generate returns by predominantly investing in companies within the Mid and Small Cap segments of the market. As a defensive measure, the strategy may temporarily allocate funds to debt and money market instruments or units of debt and money market mutual fund schemes while awaiting suitable investment opportunities or to meet liquidity requirements.

The strategy seeks to identify companies that are fundamentally robust and potentially market leaders in their respective industries. It also aims to invest in companies with relatively small market capitalization at the time of investment, yet possessing significant growth potential due to factors such as strong or emerging business lines, effective management, and improving margins.

The Portfolio Manager employs a multi-faceted approach to stock selection, considering:

1. Long-term outlook on stocks with the potential for substantial returns.
2. Stocks offering growth opportunities driven by business cyclicality, special situations, or market mispricing.
3. Qualitative assessment based on the concept of a ‘Moat,’ denoting a firm’s ability to sustain above-average returns on capital over an extended period. The ‘Moat’ concept serves as a framework for selecting companies that typically outperform competitors as long as the moat remains intact.

The core belief of ICICI Prudential PMS PIPE Strategy is that Companies create wealth, not markets.

The investment framework of ICICI Prudential PMS PIPE Strategy is to identify prominent businesses at reasonable valuations, which have competent management.

Prominent Businesses

• In 2024, ICICI Prudential PMS Contra Strategy was awarded 2nd as the Best PMS across all categories, on a 5Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2023, ICICI Prudential PMS Contra Strategy was awarded as the Best PMS across all categories, on a 1Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2021, ICICI Prudential Long Short Fund, a Cat III Long Short AIF, was awarded as the Best AIF in the Cat III Long Short category, on a 2Y Absolute Returns basis. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.