Investment Objective
Emkay Pearls aims to create wealth over an investment horizon of 2 to 3 years through a robust and research-backed equity portfolio.
The strategy is to focus on 15-20 stocks in the mid & small-cap space using BSE Midcap as the benchmark index. It follows a unique Bargain Hunting method to spot potential stocks at low current valuations which would deliver superior returns in the long term.
Investment Theme
Using a bottom-up stock-picking strategy, the Emkay Pearls portfolio follows 100% research-backed methodology and focuses on individual companies with established management and business track record. It aims to identify good companies available at attractive prices due to headwinds in the sector or business, spotting many at inflection point in their business cycle. We employ in-house tools like E- Qual (India’s first governance-dedicated stock-picking model) to mitigate risks related to management quality.
Investment Theme
Emkay GEMS seeks to drive growth from enterprises and sectors which are slated to benefit from :
- Value Migration, i.e. the framework tries to identify industries where value migration is underway and helps pick potential winners early.
- Growth in Domestic Consumption, i.e. companies that have the potential to benefit from the growth in GDP and the impact on domestic consumption-driven sectors.
- Efficiency Outliers, i.e., companies that are comparatively more efficient than their peers with respect to utilisation of assets, value-added products, return generated on the capital, etc.
The fund focuses on delivering risk-adjusted returns and avoids over-diversification. It offers low volatility, high liquidity, and low portfolio turnover. The quality filters keep out low-quality, high-risk companies, to minimise portfolio risk.
The fund managers employ the smart alpha approach to create an equi-weighted portfolio, thereby eliminating ‘allocation bias’.
Since this is a mid-cap portfolio, we also use the E-Qual module to ensure that only best-governed companies make the cut into the investment universe.
Investment Theme
Emkay GEMS seeks to drive growth from enterprises and sectors which are slated to benefit from :
- Value Migration, i.e. the framework tries to identify industries where value migration is underway and helps pick potential winners early.
- Growth in Domestic Consumption, i.e. companies that have the potential to benefit from the growth in GDP and the impact on domestic consumption-driven sectors.
- Efficiency Outliers, i.e., companies that are comparatively more efficient than their peers with respect to utilisation of assets, value-added products, return generated on the capital, etc.
The fund focuses on delivering risk-adjusted returns and avoids over-diversification. It offers low volatility, high liquidity, and low portfolio turnover. The quality filters keep out low-quality, high-risk companies, to minimise portfolio risk.
The fund managers employ the smart alpha approach to create an equi-weighted portfolio, thereby eliminating ‘allocation bias’.
Since this is a mid-cap portfolio, we also use the E-Qual Risk module to ensure that only best-governed companies make the cut into the investment universe.
Sector Allocation | Stocks | Performance
Emkay Pearls follows a multi-cap strategy with 15-20 stocks. The sectoral holdings of Emkay Pearls, As on 31st Jan 2023, are:
*As on 31st March 2022
| TOP 5 HOLDINGS | |
|---|---|
| ZOMATO LIMITED | 15.0% |
| DIVI S LABORATORIES LTD | 9.2% |
| SUNDRAM FASTENERS LTD | 9.0% |
| FEDERAL BANK LTD | 6.2% |
| ZYDUS WELLNESS LIMITED | 5.6% |
*As on 31st May 2024
| TOP 5 HOLDINGS | |
|---|---|
| Sundram Fasteners Ltd. | 11.0% |
| Apar Industries LTD. | 10.6% |
| Divi’s Laboratories Ltd. | 10.5% |
| Federal Bank Ltd. | 7.6% |
| Borosil Limited | 6.5% |
*As on 31st December 2023
Performance Update
*As on 31st March 2022
| Name | Value |
|---|---|
| TWRR | 19.30 |
| BSE 500 (TRI) | 16.60 |
| Outperformance (TWRR v/s Benchmark) | 2.70 |
Note: The portfolio returns are TWRR returns.
*As on 31st March 2022
