Investment Objective
Emkay Capital Builder is a multi-cap portfolio, that aims to identify companies with the potential to build wealth over an investment horizon of 3-5+ years.
The strategy considers top 600 companies (by market cap) as its universe and is guided by a well-defined portfolio construction discipline to filter stocks based on strict limits and a three-pronged investment process.
Three-Pronged Investment Process
Earnings Growth
E-Qual Risk Framework
Purchase Price Discipline
Investment Framework
Long Term Investing
- Low churn
- Be patient before & after investing
Conviction & Patience
Focus on absolute Returns and high emphasis on Purchase Price
Compounding is the Name of the Game
Winning sustainable wealth
Do your own Homework
Research backed & process oriented investments
Focused Portfolio
Allocation Discipline to avoid concentration risk
Avoid Mistakes
- Avoid unscrupulous promoters/ management
- Businesses getting irrelevant
- Highly leveraged companies
- Euphoric valuation
Investment Theme
Using a bottom-up stock-picking strategy, the  Emkay Capital Builder portfolio aims to consistently identify businesses offering robust growth prospects and intrinsic value at a reasonable price. We employ in-house tools like E-Qual (India’s first governance-dedicated stock-picking model) to mitigate risks related to management quality.
Sector Allocation
Emkay Capital Builder uses a multi-cap strategy with 20-25 stocks. The sectoral holdings of Capital Builder, As on 31st December 2023, are:
*As on 31st March 2022
The portfolio has had zero blowouts since inception which can largely be attributed to the intensive processes laid out in the E-Qual Risk module that make it nearly impossible for any evasive business to make its way into the fund. The Capital Builder portfolio has given returns of 14.5% since inception (As on 31st December 2023).
Performance Update
*As on 31st March 2022
| Name | Since Inception |
|---|---|
| TWRR | 16.80 |
| BSE 500 (TRI) | 16.20 |
| Outperformance (TWRR v/s Benchmark) | 0.60 |
Note: The portfolio returns are TWRR returns.
*As on 31st March 2022
