AAA Budding Beasts Portfolio

AAA Budding Beasts Portfolio

Fund Snapshot

Purpose

To provide long-term capital appreciation by predominantly investing into mid- and small-cap companies that have the potential to grow faster than economic growth, high return ratios, and strong management.

Investment Philosophy

DIVERSIFICATION

Three important risks : Governance, Technology and Business cycle – can be reduced only by Diversification. We invest across market cap, sectors, and companies to reduce company/sector specific risk.

STAGGERED APPROACH

We build the portfolio over a period of time. We do not follow Model portfolio approach.

DISCIPLINED EXIT STRATEGY

We have a disciplined Exit strategy. We sell/reduce due to rebalancing of the portfolio, change in growth assumption of our portfolio company, expensive valuations.

Market Size

Market size determines size of opportunity. We prefer companies which are targeting large market size to generate exponential returns.

Market Share

We buy the companies which are leaders in their sector as they are best positioned to navigate upturn and downturn of the economy.

Margin Of Safety

Price is what you pay. Value is what you get. We buy the companies which are available at reasonable valuations

Quality Screening

Screening Stage

Companies which have a good corporate governance, strong business moats along with a reasonable profit size

Deep Dive Stage

Companies which are market leaders and effectively positioned to grow and multiply

Selection Stage

Companies with strong earnings growth prospects and right valuations

Internal Checks – Forensic Assessment

MANAGEMENT PRACTICES

To assess the governance

ACCOUNTING POLICIES

Assess the consistency and fairness of the accounting policies

TAXATION MISCHIEFS

Identify the potential fraud

QUALITY OF CASHFLOW

Ability to convert the revenue to cash and re-invest into the business

Internal Checks – Longevity Assessment

LONGEVITY OF BUSINESS GROWTH

Sustenance of revenue and earnings growth Assessing competitive advantage

LONGEVITY OF RETURN RATIOS

Gauging business profitability and efficiency

LONGEVITY OF CASHFLOW

Identify financial strength

LONGEVITY OF REINVESTMENT

Intensity to generate Self sustaining growth

Why Invest in AAA Budding Beasts PMS?

• India's investment strategy places a strong emphasis on superior and sustainable growth.
• Look for companies with a strong balance sheet and a high return on capital employed.
• Focus on companies that are emerging giants.

A High Conviction & Quality Approach

Based on our proprietary 3M Investment Approach, we invest in a portfolio of 30-50 small-midcap firms that are poised to become large companies. Based on their strong fundamentals, a strong competitive advantage, and excellent corporate governance, we are confident in their ability to weather short-term turbulence and deliver superior risk-adjusted returns to investors with a 3-5 year investment horizon.

Invest Knowing You're Protected

Trying to get high returns without thinking about risk can wipe out your wealth fast. AltPort Funds makes sure to protect you from losses as much as we try to help you grow. Our system includes checking risks, managing potential losses, and keeping your portfolio balanced to handle tough times. By focusing on safety, we help you keep your money while still trying to grow it. Protecting what you have isn't being scared – it's being smart.