Abakkus All Cap Portfolio

Alpha Generators:

• Believe in investing to generate alpha over the markets rather than simply allocating to benchmark indexes.

• Companies with a scalable business model and the potential to grow to become large-cap. Companies whose profits are expected to grow faster than the market average.
• To trigger fundamentally undervalued stocks with decent growth expectations.

Fundamentals Driven:

• Bottom-up research with an emphasis on the balance sheet.
• Earnings ultimately determine returns. Numbers speak louder than speeches and hype.

Happy to be contrarian:

• Prefer to be the first, early, and/or only investor.
• Do not follow the momentum.
• Open to considering companies from various industries, market capitalizations, and business cycles.

The investment objective of the Abakkus All Cap Approach would be to generate alpha and risk-adjusted returns for clients by investing in a benchmark agnostic multi-cap portfolio.

Management Timing Structural

Quality – Capability and track record

Capital Allocation –Capital Expenditure is fine if ROE is maintained or enhanced

Capital Distribution –fair to minority shareholders

Error in decision –Business errors vs intentional mishaps

Earnings

• Quality of earnings vs reported numbers
• Actual earnings vs expected
• Cyclical vs Structural earnings
• Companies that can double profits in 4
• years or less or where EV/EBITDA can have in four years

Events/Trends

• Stock movement because of events.
• Can be Buy or Sell opportunity Events on the horizon
• Disruptive trends/New themes

Timing – Good Company is not necessarily a good investment if the price is not right

What is the price discounting time frame of investment Mean Reversion

Structural

• Size of the opportunity
• Competitive
• positioning / MOAT
• Consistent growth in profits

FEE STRUCTURE Fee Type* Fixed Management Fees Performance Fees Fixed Option 2.50% p.a. Nil Fixed or Variable Option 1.75% p.a. 15% sharing over 9% hurdle rate (Annual with high watermark)