The objective of Sage One India Growth GIFT Fund – GIFT City domiciled Category III AIF is to build and maintain a portfolio in high conviction growth ideas available at prices at or below fair value

The investment philosophy of Sage One India Growth GIFT Fund – GIFT City domiciled Category III AIF is based on certain Green & Red flags as follows:

Green Flags:

1. 20%+ compounded earnings growth
2. Market share gains
3. ROCE & ROE > 20%
4. High cash flow from operations
5. Sustainable margins
6. Low leverage
7. Better ROCE on incremental capex
8. Favorable ESG practices

Red Flags:

1. Loose accounting policies
2. Poor capital allocation
3. Questionable founder history
4. Related-party transactions
5. Complex corporate structure
6. Corporate governance issues

The investment process of Sage One India Growth GIFT Fund – GIFT City domiciled Category III AIF is as follows:

1. Initial Universe: Around 2,500 listed companies with daily trading
2. Fishing Pond: Focus on the 101st-1000th stocks for better growth potential
3. Watchlist: Maintain about 60 active stocks
4. Portfolio: Select 12-20 high-conviction stocks