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Portfolio Management Services

Portfolio management service is a tailor-made professional service of selecting and overseeing a group of investments that meet the long-term financial objectives as well as risk tolerance of a client. KSL offers solutions-based portfolio management services on complete need analysis that are uniquely designed to meet growth needs in a holistic manner. With KSL PMS, you get the benefit of professional money management.


KSL’s Approach
  • Market inefficiencies result from behavioral and structural anomalies
  • Investment insights, not statistics, drive research
  • Many of the investment strategies are not different than those used by fundamental managers (i.e. valuation, earnings quality, etc.)
  • Rigorous back testing of data to validate investment criteria
  • One of the key advantages over fundamental managers, we are able to test the historic performance of an investment strategy
  • Continuous research to maintain and enhance information ratio
  • To mitigate risk of imitation and of crowded trades
  • Multi factor models designed to perform throughout the business cycles
  • Factor modeling lends itself to market neutral investing, generating both buys and sells
  • Generally look for the following attributes in prospective investee companies
  • Dominant player in a niche vertical, aided by policy tailwinds, robust balance sheet, potential to generate high ROE / ROCE
KSL’s Investment Philosophy

KSL’s PMS expertise ranges across the breadth of the Indian equities market, from blue-chip large cap funds and well-performing mid-cap funds to emerging small caps.

At the heart of the Investment System at KSL is the basic philosophy that a portfolio comprising of a bunch of high quality businesses with a “moat around their business model”, bought at a historically reasonable valuation and held for medium to long term will invariably beat the market and most other funds by a fair margin.

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Overarching Investing Philosophy and Principles
  • Greater certainty of earnings v/s. mere quantum of earnings growth
  • Superior and consistent quality of earnings v/s. mere quantum of earnings growth
  • High quality at a reasonable price v/s. inferior quality at an arithmetically 'cheap' price
  • Employ effective capital allocation and utilise risk mitigation strategies to generate risk adjusted returns
  • Focussed on a growing asset class in India – equities by investing in quality companies in India with high growth potential
  • As a part of our investment process, we strive to develop a deep understanding of the companies in which we invest, through proprietary company specific research.
  • Focus is always upon discovering and taking advantage of an insight that can provide the edge, and then adding layers of research and due diligence to construct a portfolio

Stategies

Objective

    • To generate steady returns in volatile and changing market conditions.

    • To invest in stocks with short-medium term perspective, for a minimum 15-20% price movement and an upward bias.

Investment Strategy

    • The portfolio is created keeping a close watch on the dynamic conditions of the market.

    • The portfolio will employ a combination of judicious investment strategies to provide optimum returns to investors

    • The composition of the portfolio will aim to reflect the contemporary market sentiments at any given point of time

    • The Scheme aims to deliver higher returns in Short to Medium term by investing in fundamentally strong stocks with momentum approach, coupled with active profit booking.

    • The portfolio may take aggressive cash calls and increase its cash level to 100% when the view on the markets is negative.

    • Our investment approach would be to identify stocks that have potential to generate returns out of performance over Nifty in the large-cap category


Objective

    • To invest in growth oriented companies with sustainable business models backed by strong management capabilities

    • Emphasis on smaller capitalized companies with a market capitalization not exceeding Rs. 1,000 crore at the time of investment

Investment Strategy

    • Buy and Hold a basket of 15-25 companies with a medium to long term horizon

    • De-risked strategy through diversification

    • Target companies in quest of growth in any market environment

    • Endeavour shall be to focus on emerging businesses at a nascent stage or matured businesses at attractive valuations

    • Stocks that may offer trigger events creating potential for unlocking of latent valuation over longer term

    • The portfolio shall constitute of companies with market capitalization in the range from Rs 1000 Cr and above

    • The portfolio composition shall be optimized in market capitalization mix as well as sectoral exposure

    • The Portfolio would target to invest in Small and Mid Cap Opportunities that have the potential of delivering above-average growth over the next 2-3 years

For more information on KSL’s Portfolio Management Services, contact:

Mr. Pranav Khandwala

pranavk@kslindia.com | +91 22 40767373 / +91 9004699578

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