SAGEONE INDIA OPPORTUNITY TRUST

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SageOne Investment Managers LLP

SageOne Investment Managers LLP is an investment management firm based in Pune, Maharashtra, offering Portfolio Management Services (PMS) and managing Category III Alternative Investment Funds (AIFs). Founded by Samit Vartak, the firm focuses on listed equity investments and offers multiple investment approaches for investors seeking professionally managed portfolios. The firm operates across three areas: domestic Portfolio Management Services, domestic Alternative Investment Funds and an AIF offering through GIFT City. Each operates within its applicable regulatory framework and has its own investment documentation.

1. The "SAGE" Framework

The firm defines its approach through the SAGE framework:

Sustainable: They look for businesses with lasting competitive advantages ("moats") that ensure long-term profitability.
Accountable: A primary focus is on "clean and competent" management teams with a proven track record of ethical decision-making.
Growth-oriented: They target companies with the potential for superior earnings growth (typically aiming for >20% CAGR).
Efficient: They prioritize companies with healthy return ratios (ROCE and ROE typically >20%) and efficient capital allocation.

2. Research-Driven Selection

SageOne utilizes a bottom-up research process to validate the quality of a business before considering valuation:

Deep Analysis: Extensive financial modeling to stress-test assumptions and define intrinsic value.
Field Validation: Use of on-site company visits, channel checks with suppliers/customers, and interaction with industry experts to verify management's claims.
Forensic Filters: Implementation of in-house forensic models to cull out companies with questionable accounting or governance practices.

3. Portfolio Construction & Risk Management

Concentrated High-Conviction: Portfolios are typically concentrated (e.g., 15–25 companies) to ensure that the best ideas have a meaningful impact on performance.
Valuation Discipline: While they prioritize business quality first, they aim to acquire these high-quality assets at prices at or below their fair value.
Prudent Limits: To manage non-systematic risk, they impose sector limits (max 25% to any one sector/closely related sectors) and business group limits (max 20% exposure).
Active Rebalancing: They actively monitor holdings and rebalance based on changing business dynamics, macro risks, and valuation fluctuations.

4. Core Objectives

The ultimate goal is to generate superior, long-term wealth through compounding. They prefer businesses that are not overly reliant on the economy or cyclical swings, focusing instead on companies that can gain market share and grow their earnings regardless of broader market sentiment.