MNCL Capital Compounder Fund – I

To create alpha with minimum active risk

Their strategy is to keep hawk eye on industry leaders with:

• Strong accounting quality corporate governance (backed by internally developed Accounting Quality and Corporate Governance model)

• Consistently high return ratios

• Emphasis on returns generated by the company on its incremental capital employed (I-ROCE) in recent years and preference would be for companies which have higher I-ROCE vs their past ROCE

• Strong focus on real cash flows and cash flow yields

• Beneficiaries of industry shift or strong macro tailwinds

Their bottom-up stock selection approach intends to create alpha by picking industry leaders (or the ones’ gaining market share) who possess the following characteristics:

• Good Cash Flows
• Clean & Capable Management
• Solid Corporate Governance History
• Long Business track record with decent return ratios