Sameeksha Capital Investment Fund – Category III AIF

The investment objective of Sameeksha Capital Investment Fund- Category III AIF is that it seek seeks capital appreciation on a long-term sustainable basis while managing investment risk

The investment philosophy of Sameeksha Capital Investment Fund- Category III AIF is that the fund may invest in between 15-30 equity/equity-oriented securities across multiple sectors as part of its Core Strategy. Sameeksha Capital Investment Fund- Category III AIF may also adopt an Alternate Strategy for part of its portfolio, to enhance the overall returns to the investors. For this purpose, Sameeksha Capital Investment Fund- Category III AIF may primarily invest in derivatives such as Index (Nifty, Banknifty and others) Options, Index (Nifty, Banknifty and others) Futures, Stock Futures and Options, other approved equity derivative products and such other instruments as permissible under SEBI (AIF) Regulations. The Fund manager may, under this strategy, also invest in equity shares, debt securities or any other securities as permitted under the AIF Regulations on a short-term basis.

he investment strategy of Sameeksha Capital Investment Fund- Category III AIF is that it aims to pursue investment strategies that are likely to deliver long term capital appreciation while managing risk. Sameeksha Capital Investment Fund- Category III AIF will primarily invest in equity/equity-oriented securities, debt securities or such other permissible securities under the AIF regulations as a part of its long-term strategy (referred also as Core strategy). Sector Allocation shall be defined from time to time based on prudent judgment of the investment manager, subject to a cap of 40% in a single sector. The fund may also aim to enhance returns by lending its holdings through Stock lending and borrowing mechanism (SLBM).

Sameeksha Capital Investment Fund- Category III AIF aims to amalgamate 4 core beliefs of Opportunity, Competence, Portfolio Discipline, and Values, to create concentrated fund of 15-30 businesses that:

• Will deliver growth based on end market and market share gain opportunities
• Have Clear and sustainable Competitive advantage in form of pricing power, cost structure, capital efficiency
• Are run by Competent Management with sufficient bandwidth and depth
• Follow conservative accounting practices and have taken sound capital allocation decisions
• Pass stringent corporate governance checklist
• Are likely to deliver sufficient ROIC as well as growth in revenue, earnings and cash flow
• Have relatively low dependence on capital markets
• Can deliver sufficient returns adjusted for risks and liquidity premium over a period of 3-5 years

A portion of the fund may be invested in companies that are turnaround situations or cyclical businesses available at discount to replacement value and these companies may not entirely meet the above criteria.

Portfolio risk for Sameeksha Capital Investment Fund- Category III AIF is managed through diversification as well as through exits from over priced stocks Portfolio construction based on defined limits on individual position size as well as liquidity based exposure Focus on loss minimization and absolute return.

Sameeksha Capital Investment Fund- Category III AIF has a flexible & valuable investment framework.

• Can take large cash positions or deploy other methods to reduce equity exposure in extreme market conditions
• Buy Sell framework also affects cash levels and sets up to end up at least in some cash when valuations are at extreme

Level 1 Checklist

Qualitative Factors

• Promoter Intent
• Sustainable competitive advantage
• Growth potential of the sector
• Corporate structure
• External potential headwinds
• Credit rating

Quantitative Factors

• Earnings dependency
• Current valuation
• Return potential over next 3-5 years
• Historical Cash Flow generation and its use
• Benchmark RoIC or ROE

Level 2 Checklist

Qualitative Factors

• Pricing Power
• Competitive Advantage
• Customer Concentration
• Efficient business operation
• Key historical management decisions
• Alignment of shareholder interests
• Related Party Transactions

Quantitative Factors

• Historical trend of RoIC above cost of capital
• Historical trend for key financial ratios
• Check for Aggressive Accounting
• Capital Expenditure Plans

• In 2023, Sameeksha Capital India Equity PMS was awarded Rank #2 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, Sameeksha Capital India Equity PMS was awarded Rank #2 as the Best PMS across all categories, on a 3Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.

• In 2022, Sameeksha Capital India Equity PMS was awarded the winner as the Fastest Wealth Creator PMS in the Multi Cap Category, on a 3Y Risk-Adjusted Returns. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.