About Company
Renaissance Absolute Return Alpha Portfolio
Investing and long-term wealth growth are fundamental to our lives. They focus on high-quality firms that can generate better long-term growth in the search for exceptional investment opportunities. Rather than investors, they like to conceive of themselves as business owners. They think that risk management should be at the heart of every investing strategy, and they aspire to achieve better risk-adjusted returns.
Renaissance Absolute Return Alpha Portfolio
Fund Snapshot
| Type of Fund | Multicap Portfolio |
| Portfolio Strategy | Long Term Buy & Hold |
| Number of Stocks | 15-20 Bluechip Stocks |
| Focus | Absolute Return |
| Investment Horizon | 3 Years |
Fund Overview
Renaissance Alpha Portfolio is a Multicap portfolio which focuses on superior absolute returns over the investment horizon of 3–5 years. It’s a low risk, high quality growth portfolio which delivers superior risk adjusted returns over the medium to long term. The portfolio has stringent filters for stock selection. As a result, the portfolio strikes a right balance between risk, growth, quality and valuation thus ensuring healthy alpha generation. Key portfolio attributes are:
- High Management Quality and Business Leadership
- Companies with Low Leverage and High ROEs.
- Superior PAT growth and FCF generation.
Investment Philosophy
Growth Biased
Focused on investing in Quality business that can deliver sustainable high growth over medium term to long term. Be selective in cyclical business. Risk Management is central to Investment Management.
Sustainable Quality Growth At Reasonable Price (SQGARP)T
Sustainability
Companies with sustainable and durable business models
Quality
Superior quality businesses as demonstrated by Competitive edge, Pricing power, ROE, FCF. Good quality and competent management teams
Growth
Business that can deliver superior growth over medium to long term
Price
Ability to invest at reasonable valuations. Fair value approach to valuations. Focus on economic value of business.
Risk Management
Mortality Risk
Experienced investment professionals to help limit investment universe to carefully select good quality businesses
Volatility Risk
Monitor overall portfolio volatility and control risk class/sector/stock exposures as needed
Risk Management Strategy
The fund managers will strive to manage the following risks:
Quality Risk
- Description: Investing in unsustainable/ weak companies
- Strategy: Experienced investment professionals to help limit investment universe to carefully selected high quality business
Price Risk
- Description: Overpaying for a company
- Strategy: Detailed in-house research to enable “Fair Value” based investment recommendations
Management Risk
- Description: Inability for management to drive growth
- Strategy: Assess quality of team and their focus on creating shareholder value
Financial Risk
- Description: Overleverage or dependent on a critical revenue stream
- Strategy: Monitor overall financial risk and leverage of investee company
Event Risk
- Description: Risk due to company or sector-specific event
- Strategy: Effective and timely response to uncertain events enabled through in-depth understanding of businesses
4 Pillars of Investment
- Philosophy
- Process
- People
- Performance
Investment Process
Investment Universe
Identify companies with sustainable earnings growth potential, credible management & long-term growth prospects
Research Companies
Analyze fundamentals of the company and industry to assess attractive segments within our universe
Stock Selection
Portfolio is constructed bottom-up based on careful analysis and taking advantage of volatility, crisis, or unusual circumstances
Portfolio Management
In order to ensure investment objectives are met, ensure effective governance, active involvement and timely intervention
Stock Selection Process
Size
Business Leadership
Companies with Market Cap >3000cr
Quality
Companies having ROE >15%
FCF positive
Good quality and competent management teams
Growth
PAT growth of 15-20% over next five years
Risk
Reasonable Margin of Safety
Debt/Equity < 0.5
Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
Pankaj Murarka
Pankaj is the founder of Renaissance Investing Managers and is in charge of the investment process. He has more than 21 years of expertise in equity research and fund management, with a proven track record of success.Pankaj formerly worked as the Chief Investment Officer (CIO) of Axis Mutual Fund, where he managed over $2 billion in Indian equities.
He was a member of the team that founded Axis Mutual Fund in 2009 and has since grown it into one of India’s leading AMCs thanks to exceptional investment performance.
He was in charge of the performance of all of Axis AMC’s equities funds, and during his tenure as Chief Investment Officer, Axis AMC was acknowledged as the top Equity Fund company in India.
In 2014, he was also named Best Fund Manager – Runner Up Award for Axis Midcap Fund by Outlook Money.
The fund outperformed the benchmark with a CAGR return of 24 percent (2011-2015). It was a top decile fund in 2012 and 2013, and it was named the No. 1 performing fund in India across all funds in 2014 on a three-year basis.
In 2015, he was also recognised by Outlook Money as a Leading Fund Manager with a 5-year track record of consistent success.
Pankaj has also served as the India Portfolio Manager for Merrill Lynch’s Strategic Investment Group.
He has also previously worked at Rare Enterprises, MotilalOswal Securities, and UTI Mutual Fund.
Throughout his career, he has consistently delivered better risk-adjusted returns.
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Disclaimer: Investing in AIF, PMS, Gift City or Mutual Fund is subject to market risk. Please read the related documents carefully. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic, and individual company factors. We at ALTPORT do not guarantee any returns in the hands of investors, nor do we take any sort of accountability for the performance of the scheme.
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