Stallion Asset-Core Fund

Fund Snapshot

Fund Overview

The Stallion Asset Core Fund follows a trend-driven, growth-focused investment strategy designed to capitalize on long-term market leaders. It emphasizes sector rotation, longevity of growth, and global trends to maximize returns.

Key Investment Principles:

• Buy & Rotate Strategy: Prefers rotating into emerging leaders over a pure buy-and-hold approach.
• Market Leadership: Identifies and invests in the leader of each bull market and avoids past winners.
• Earnings Growth Focus: Targets sectors with sustainable 20%+ growth over 3-5 years.
• Momentum Investing: Prioritizes companies making 52-week highs over undervalued stocks at 52-week lows.
• Longevity Premium: Stocks with longer growth cycles command higher valuations, often mispriced by the market.
• Global Trends: Recognizes that major investment trends are global and aligns accordingly.

Investment Philosophy

• Stallion Asset PMS seeks to invest in the bull run’s leader every 1-3 years since the fund manager suspects that the previous bull run’s leader will not lead the next bull run, and therefore has a knack for finding leaders for all bull runs.
• Solid earnings momentum produces champions in bull markets – the plan seeks to invest in businesses with earnings growth of close to 20% each year for the next 1-3 years.

Fees Structure –

Plan A  –
Fixed Fee   is 2.5% p.a. and its Performance Fee nil and its Exit Load 2% before 12 months

Plan B –
Fixed Fee 1.5% p.a. and its Performance Fee 15% of excess Profits above Hurdle Rate 10% and its   Exit Load 2% before 12 months

Focus on the 4M’s  –

Market Leadership –
In business, there is nothing worse than the competition; monopoly is the only way to run a successful company. Every business begins with a problem to be solved! Every Big Business thrives in the long run by ensuring that it is the only one capable of solving the problem.

Market Opportunity-
Simply said, the quantity and length of a business’s development (of Earnings) is the basis on which significant amounts of wealth may be created. We invest in businesses that serve a market that is large enough for our money to grow 4-5 times without having to compete.

 Management –
Simply said, the quantity and length of a business’s development (of Earnings) is the basis on which significant amounts of wealth may be created. We invest in businesses that serve a market that is large enough for our money to grow 4-5 times without having to compete.

Margin of Safety –
We don’t employ PE ratios and instead concentrate on capital allocation and distribution.

Value of the firm equals steady-state value + future value creation + excess cash – debt

Investment Objective

To provide the Client with a structure that can achieve the preservation and growth of its capital, the Portfolio Manager shall endeavor to apply its professional expertise in order to help the Client achieve its goals as per the product options chosen by the Client. However, the Client agrees and acknowledges that while the aforesaid is the objective, there is no guarantee that the objectives will be achieved nor there is any guarantee of any returns or of there being no capital loss.

Unique Feature

Market Leadership

Monopoly is the only prerequisite for every really successful firm, and nothing is worse than the competition in business. Solving a problem is the foundation of any business. Every major corporation that wants to prosper long-term must ensure that it is the only one with the ability to address the issue.

Management

Capital distribution and capital allocation are two crucial roles. Concentrate on Scale, Speed, and Sustainability. A bad negotiator will never get a good bargain. There are plenty of trustworthy people in our world. A promoter without integrity has a fair value of zero.

Market Opportunity

Large wealth creation is based on the magnitude and length of a business’s growth (of earnings), which is known as the size of the opportunity. We make investments in businesses that serve markets that are big enough to allow our investment to expand four to five times without having to compete.

Investment Approach

Types of securities: Stallion Asset may invest in any security as described under Securities Contracts (Regulation) Act, 1956 to meet the investment objective.

Basis of Selection of Securities: Selection of Securities will be done to meet client’s investment objectives on best effort basis depending on Market conditions.

Strategy: The strategy for above investment approach will be Equity.

Appropriate benchmark: Stallion Asset Core Fund benchmarks itself to S&P BSE 500 TRI.

Basis of Selection of Benchmark: The S&P BSE 500 TRI is in line with the manager’s long term focus on companies regarding market capitalization. Hence, S&P BSE 500 TRI Index has been selected as the benchmark for comparing performance.

Minimum Investment: The Portfolio Manager shall not accept from the Client, funds or Securities worth less than Rupees Fifty Lakhs or such other minimum amount as may be stipulated by SEBI from time to time.

However, Portfolio Manager can fix a higher limit for such minimum amount as mutually agreed and/or communicated to the Client from time to time.

Clients Investment Horizon: We expect the client to have an Investment Horizon of at least 3+ years in the Scheme.

Tenure of Portfolio Investments: The Portfolio Investments may be short-term, medium term or long-term in Nature depending on investment objectives & prevailing market conditions.