Abakkus Diversified Alpha Approach

Abakkus Asset Manager LLP

Abakkus Asset Manager LLP is an alpha-focused asset manager based in India. Mr. Sunil Singhania founded it in 2018 and called it after the simplest ancient computing device, the abacus. The goal and aim of Abakkus is to become one of India’s most reputable and successful asset managers. This ideology has shaped the Abakkus portfolio’s beliefs: Keep things as straightforward as possible. Be a firm believer in the basics. Focus on the fundamentals and numbers.

Fund Snapshot

Minimum Investment	INR 50 lakhs
Benchmark	BSE 500 TRI
Investment Team	Mr. Sunil Singhania (CIO), Mr. Aman Chowhan (Senior Fund Manager), Mr. Hitesh Arora (Fund Manager)
Custody	HDFC Bank, Kotak Mahindra Bank, & ICICI Bank
Returns	Large Cap: 40% \| Mid Cap: 29% \| Small Cap: 20% \| Cash & Equivalent: 11%
Fixed Option Fees	2.50% p.a. of AUM
Fixed+ Variable Option Fees	Management fees: 1.75% p.a. of AUM; Performance Fees: 15% sharing over 9% hurdle rate (subject to high watermark)
Exit Load Fees	Between 0 and 12 months from investment date: 1.5% \| Post 12 months from investment date: 0%

Fund Overview

Unique 40:30:20:10 approach to portfolio construction
Capturing opportunities across market capitalization
Lower volatility through large-cap and larger mid-cap exposure
Focus on alpha creation via exposure to mid, small & micro caps
Risk discipline and management by way of position sizing
Liquidity management, as smaller capitalization companies have incrementally smaller weights

Investment philosophy

The risk-reward equation is the main emphasis of investment strategy, which calls for expected returns to equal the risk assumed. By putting price and value first, it distinguishes between a good firm and a good stock. Opportunities are evaluated on an individual basis, encouraging flexibility beyond particular topics. The objective is to produce alpha by concentrating on mid-cap equities with growth potential that are fundamentally underpriced and giving preference to growth businesses that are anticipated to beat market averages. Bottom-up research that focuses on balance sheet indicators rather than hype is essential for fundamental analysis. Contrarian investments are part of the strategy, which aims for early entrance without tracking market trends across different industries and sizes.

Characteristics of the Approach

Indicative Market Cap	No. of Stocks	Exposure to Each Stock	Total Exposure / Weightage (Approx./Indicative)
Large Cap	10	4%	40%
Mid Cap	10	3%	30%
Small Cap	10	2%	20%
Micro Cap	10	1%	10%

Top 10 Holdings

PNB Housing Finance Limited
Bharti Airtel Limited
HDFC Bank Limited
Canara Bank
NTPC LIMITED
Axis Bank Limited
Vedanta Limited
Larsen & Toubro Limited
Jubilant Pharmova Limited
State Bank Of India

Top 5 Sector Classifications as on May 31, 2025

Sector	Asset %
BANKS	20.0
NBFC	13.7
COMMODITIES	10.1
TELECOMMUNICATION	7.3
HEALTH CARE	6.4

Disciplined 40:30:20:10 Approach

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	AUM(Cr.)	1M	3M	6M	1Y	2Y	3Y	4Y	5Y	Ince.
Performance	₹1079.96	-11.32	-12.42	-6.01	2.54	2.72	NA	NA	NA	3.08
Benchmark	NA	-11.37	-13.94	-9.62	-3.12	1.32	NA	NA	NA	2.15

AUM(Cr.)

Ince.

Performance

₹1079.96

-11.32

-12.42

-6.01

2.54

2.72

3.08

Benchmark

-11.37

-13.94

-9.62

-3.12

1.32

2.15

Fund Manager

Sunil Singhania

Sunil Singhania founded Abakkus Asset Manager LLP, an investment management company, in 2018 after 24 years of work experience. He is a chartered accountant who then became a chartered financial analyst from CFA Institute.

Mr. Singhania was a member of the 15-member international committee that rewrote the Code of Ethics handbook of the CFA Institute. For eight years (2005-13), he headed the Indian Association of Investment Professionals. The CFA Institute also enlisted him as a board member, and he later became the chair of the investment committee.

The renowned CFA worked at Reliance Capital for 15 years, where he initially headed the equity investments with a focus on Indian companies. He then went on to become Global Head- Equity at Reliance Capital. During Mr. Singhania’s leadership, 100% growth occurred in a reliance growth fund in 22 years.

Frequently Asked Questions

1. What is the 40:30:20:10 investment approach followed in this strategy? +

The strategy follows a diversified allocation model with approximately 40% in large caps, 30% in mid caps, 20% in small caps, and 10% in micro caps. This structure is designed to balance stability, liquidity, and long-term growth potential.

2. Who manages the Abakkus Emerging Opportunities Approach? +

The investment strategy is led by Sunil Singhania along with Aman Chowhan and Hitesh Arora as part of the investment team.

3. What kind of companies does the portfolio invest in? +

The portfolio invests across large, mid, small, and micro-cap companies with strong fundamentals, attractive valuations, and long-term growth potential. The strategy focuses on bottom-up stock selection rather than chasing market trends or momentum themes.

4. What is the minimum investment amount for this PMS strategy? +

The minimum investment required to invest in the strategy is ₹50 lakh, as mandated under PMS regulations in India.

5. How does the strategy manage risk in volatile market conditions? +

The strategy uses disciplined position sizing, diversified market-cap allocation, and liquidity management to reduce volatility. Exposure to established large-cap companies helps provide stability, while mid and small-cap allocations aim to generate alpha over the long term.