Equirius Long Horizon Fund Strategy

Equirus Long Horizon Fund

(Portfolio Management Service)

Our Investment Philosophy

Equirus PMS investment philosophy is based on the synergies of value & quality. We intend to invest in undiscovered business leaders with long term potential growth. To be suitable for our Portfolio, business must have some strong merits most relevant to long term investing-qualities recognized over time by investors and are selling it at a price below the intrinsic value.

Fund Manager & Experience : Mr. Viraj Mehta

• Total Experience: 13 yrs • Managing this portfolio since December 2016

Performance

Comparative performance of ELHF vs. Benchmark Draw

Market Cap Graph & Input ( Weighted Avg market cap)

Top 5 Holding Thangamayil Jewellery Limited 13.01% IFB Industries Ltd 12.07% Koltepatil Developers Ltd 9.35% Rane Holding Ltd 7.23% CEAT Ltd 5.74%

Top 5 Sector holding

Jewellery 13.01% Consumer Durables 12.07% Real Estate 9.35% Automobile 7.23% FMCG 6.29%

Performance relative to other Portfolio Managers within Equity Strategy

https://www.apmiindia.org/apmi/welcomeiaperformance.htm?action=PMSmenu

3 Year Rolling Return Analysis

1. ELHF has outperformed index 98% of the times.

2. ~65% of times the outperformance is greater than 30%.

3. Comparison of actual returns of ELHF and benchmark a. Out of 1105 observations, ELHF has given negative returns only on 13 observations (1.2% of total) as compared to 48 by the benchmark (4.3%). b. ELHF has returned above 10% CAGR returns for 1000 observations (90% of total) whereas the benchmark has just done it for 863 observations (78%).

Portfolio Addition/Deletion in last 6 months

1. Addition

• Vadilal Industries: It is engaged in manufacturing and distribution of ice-cream and frozen products in domestic and international market (mainly US and Australia). Performance in international market (~50% revenue contribution) has improved substantially in the recent years. Domestic market has also started recovering from covid impact and competitive intensity has reduced as weaker players have exited the market. We expect strong growth in both the markets and substantial valuation re-rating in the coming years.
• Prataap Snacks Limited: Prataap snacks is one of the market leaders in snacking category in India. The business gives an attractive entry point as it has been hit by multiple business issues like high raw materials prices and lower sales due to schools being closed. Company has taken several steps to combat the same. We believe current stock price proves an attractive entry point with several business and stocks triggers going forward.

2. Deletion

• Oriental Aromatics : It is facing RM cost pressures for last couple of quarters. We think company will continue to do well but risk-reward ratio is no longer favourable.