Overview

Our Emerging Corporates India Portfolio (ECIP) was launched in 2017 with the objective of investing in emerging companies that are enjoying a Competitive Advantage Period (CAP), a Growth Advantage Period (GAP), and are being steered by strong management teams. We define a CAP by a Company’s ability to generate a high Return on Capital Employed and a GAP by the landscape which presents a Company with an opportunity to grow at a faster rate than the nominal GDP growth rate. Management teams are assessed by their ability to capitalise on the CAP and GAP as well as by our filters of corporate governance and fairness towards minority shareholders.

Investment Process

The Emerging Corporates India Portfolio’s process starts with our pre-determined core universe of stocks that has been refined over several years. Within the universe companies are studied in-depth and continuously tracked. From the universe stocks, stock selection is governed by two key parameters: 1. Pre-decided valuations (an evolving assessment of the fair business value of a company) and 2. Pre-decided weights (based on an assessment of risk/ opportunity in the stock). The ECIP strategy also selectively invest in special situations (SS) though the exposure will be less than 10% at any given time.