The Value Strategy aims to benefit from the long term compounding effect on investments done in good businesses, run by great business managers for superior wealth creation.
The Strategy has the investment style of buying undervalued stock & sell overvalued stocks, irrespective of Index movements.
At Molal Oswal Asset Management Company (MOAMC), our investment philosophy and invesng style is centered on 'Buy Right: Sit Tight‘ principle.
Buy Right Stock Characteristics
- ‘Q’uality denotes quality of the business and management
- ‘G’rowth denotes growth in earnings and sustained RoE
- ‘L’ongevity denotes longevity of the competitive advantage or economic moat of the business
- ‘P’rice denotes our approach of buying a good business for a fair price rather than buying a fair business for a good price
Sit Tight Approach
- Buy and Hold: We are strictly buy and hold investors and believe that picking the right business needs skill and holding onto these businesses to enable our investors to benefit from the entire growth cycle needs even more skill
- Focus: Our portfolios are high conviction portfolios with 20 to 25 stocks being our ideal number. We believe in adequate diversification but overdiversification results in diluting returns for our investors and adding market risk
- Amongst India’s leading PMS Providers, with assets under management of approx Rs. 9,519 Crores
- Our Flagship “Value Strategy” has outperformed the benchmark across market cycles for a 13 year period
- Motilal Oswal PMS has one of the largest active accounts (more than 20,624 ) on PMS platform
- Motilal Oswal PMS has active clients in 148 different cities right from Adilabad to Zirakpur ; a testimony of strong acceptance of our PMS across the length & breadth of the country
Data as on Feb 28, 2017
Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of the Portfolio Management Services (PMS) will be achieved. Investors in the PMS Product are not being offered any guaranteed/assured returns. Past performance of the portfolio manager does not indicate the future performance for any of the strategies.
- A business is prudently picked for investment after a thorough study of its underlying hidden long-term potential.
- Value Investment involves determining the Intrinsic value of a stock, and investing in it if the difference between the value and the stock price provides a sufficient Margin of Safety
- “We don't get paid for activity, just for being right. As to how long we'll wait, we'll wait indefinitely.”-Warren Buffett
|Stock||Purchase Date||Adjusted Purchase Price||Current Market Price
(Feb 28, 2017)
|Hero MotoCorp Ltd||Jun-03||253.65||3,138||1137%|
|Eicher Motors Ltd||Apr-12||2054.80||24,130||1074%|
|State Bank Of India||Jun-03||36.00||269||648%|
|HDFC Bank Ltd||Jul-08||201.00||1,390||592%|
Please Note: The given stocks are part of portfolio of a model client of Value Strategy as on Feb 28, 2017. The stocks forming part of the existing portfolio under Value Strategy may or may not be bought for new client. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Name of the PMS Strategy does not in any manner indicate its future prospects and returns. The Companies mentioned above are only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.
Top 5 Holdings
|Sr. No.||Scrip Name||(%) Holdings|
|1||Bharat Petroleum Corporation Ltd.||9.41|
|2||HDFC Bank Ltd.||9.16|
|4||Kotak Mahindra Bank Ltd.||7.94|
|5||Eicher Motors Ltd.||7.82|
Please Note: These stocks are a part of the existing Value PMS strategy as on Feb 28, 2017. These Stocks may or may not be bought for new clients. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. The strategy may or may not have any present or future holdings in these stocks. The companies mentioned above are only for the purpose of explaining the concept and should not be construed as recommendations from MOAMC.
- Mode of payment : By Fund Transfer/Cheque and/or Stock Transfer
- Investment Horizon : Medium to Long Term (3 Years +)
- Benchmark : Nifty 50 Index
- Account Activation : Next business day of Clearance of funds
- Portolio Valuation : Closing NSE market prices of the previous day
- Operations : Investments managed on individual basis | Third party custodian for funds and securities
- Reporting : Monthly Performance Statement | Transaction, Holding & Corporate Action Reports | Annual CA certified statement of the account
- Servicing : Dedicated Relationship Manager | Web access for portfolio tracking
Since Inception, Value Strategy has delivered annualized returns of 24.86% vs. Nifty 50 returns of 16.86%, an out performance of 8.00% (CAGR).
Please Note: The Above strategy returns are of a Model Client as on Feb 28, 2017. Returns of individual clients may differ depending on time of entry in the strategy. Past performance may or may not be sustained in future and should not be used as a basis for comparison with other investments. Strategy returns are shown above are post fees & expenses. Returns above 1 year are annualized.
Risk-Return Matrix & Strategy Construct
- Allocations - Market capitalization : Large Caps : 65% - 100% | Mid Caps : 0% - 35%
- No. of Stocks : 15 - 20 stocks for a portfolio
- Investment Horizon : Medium to Long Term (3 Years +)
- For Whom : Investors who like to invest with a Long-term wealth creation view
- Scrip Allocation : Not more than 10% in a single stock at the time of initiation
- Sector Allocation Limit : 35% in a sector