Accuracap Alpha 10 PMS

Executive Summary

• Company
  • Started as Family Office in 2009 to manage its own funds. Based out of New Delhi
  • Managing Public Funds since 2011
• Product
  • Diversified Long Only PMS. Four focused Schemes – Large, Mid & Small, Micro and MultiCap
  • Stock selection based on fundamental and technical parameters using a proprietary algorithm developed over 10 years
• Performance
  • Schemes have outperformed the benchmark and most comparable funds over many periods
  • Exceptional Risk-Adjusted-Returns per Morningstar study
• Pedigree
  • Founders & Senior Management - Renowned Business Executives and Eminent Computer Scientists
  • Part of Global Executive Leadership team and Managed large Businesses at Adobe – a Fortune 500 company - for two decades

Portfolio Philosophy Based on Deep Science

• Objective
  • Own diversified portfolio of typically 12 – 35 high quality Companies
• Intelligent Ranking Algorithm
  • Stock Selection Based on Proprietary Ranking Algorithm
  • Back Tested on data from Jan 1, 1999 and deployed in market since 2009
  • Blend Business Growth, Stock Value, and Stock Price Momentum while Controlling Risk
  • Comprehensive Valuation Analysis
• Strong focus on Business Fundamentals
  • Long Term Earnings trend
  • Strength of Balance Sheet
• Risk Management
  • Promoter Risk
  • Business Growth Risk
  • Solvency and Liquidity Risk

Investment Process

Stage One: Core Earnings

Stage Two: Factors For Model Ranking

• Growth
  • Revenue, Core Earnings and Cash Flows
  • 20 Quarters Trend Analysis
  • Adjusted for Seasonality
• Core Strength & Risks
  • Trend Analysis of Margin and Return on Capital Employed
  • Strength of Balance Sheet, Solvency, Liquidity
  • Delta between Cash Flows and Earnings
  • Return on Marginal Invested Dollar
  • Stock Price Momentum over Short / Mid / Long Term
• Valuation Relative To
  • Universe
  • Peers
  • History

Stage Three : Portfolio Construction

Disciplined Approach to Portfolio Management

• What we Do

  • Mostly Fully Invested. No attempt to time the Market
  • Portfolio is rebalanced on the basis of stock rankings
  • Stock exits the portfolio if the rank is below cut-off on the rebalance date
  • Exiting Stock is replaced by the new high ranked stock while keeping number of stocks in portfolio manageable

• What we Would NOT Do

  • Short Term Investments, Derivatives or Leverage
  • Develop Personal Relationships with managements of investee companies
  • Invest Based on Stories, Tips, or Whispers
  • Invest in Public Sector Company
  • Invest in Fad or Hot Sector
  • Invest in IPOs

Summary : Investment Philosophy & Process

Y-o-Y Returns - on 29th Feb 2024; Net of all Expenses /Fees

Absolute Returns - on 29th Feb 2024; Net of all Expenses /Fees

Quartile Analysis by APMI - on 29th Feb 2024

Three years Rolling Returns - PicoPower & Alpha10

Quarterly Returns – Pico Power

Comparison Peer Mutual Funds – Pico Power

Quarterly Return – Alpha10

Comparison Peer Mutual Funds – Alpha10

Quarterly Return – AlphaGen

Comparison Peer Mutual Funds – AlphaGen

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Quarterly Return - Dynamo

Comparison Peer Mutual Funds – DYNAMO

Some Big Winners- PicoPower

Some Big Winners- Alpha 10

Some Big Winners- Dynamo

PicoPower - Top of the Charts on Multiple Parameters

• “Compared with the benchmark, the strategy outperforms both in terms of risk and return. Meaning, Pico Power not only assumes a lower level of risk, but also manages to outperform the benchmark at this risk level.”
• “It has not only outperformed the average peer in all trailing periods, but has beaten the top performer in most periods” - Morningstar

Alpha10 - Top of the Charts on Multiple Parameters

• “On the trailing returns front, it has not only outperformed over the long term, but has also delivered superior returns over longer time frames”

Fund Terms

• Portfolio: PICOPOWER, ALPHAGEN, ALPHA10 & DYNAMO
• Type of Offering: Discretionary Portfolio Management Service (PMS) – Equity
• Portfolio Manager/Advisor: Accuracap Consultancy Services Pvt. Ltd.
• Benchmark: NIFTY 50 TRI for Alpha10
• A) Fixed Fee Option Fixed fees - 2.5% p.a.
• B) Profit Sharing Option
  • i) Fixed Fee – 1.5% p.a.
  • ii) Incentive Fee - 20% of excess returns generated over hurdle at the end of every FY on high water mark basis.
• Hurdle Rate
  • i) 10% for Alpha10
  • ii) 12% for PicoPower and AlphaGen
  • iii) 14% for Dynamo
• Other Charges: Statutory/ Other charges as applicable (STT/ Demat/ Service Tax/Custodial charges etc.)
• Exit Load Before completion of 1 year : 2% of current investment value After 1 year but before completion of 2 Years : 1% of current investment value After 2 years completion : Nil