SageOne PMS
PMSIME's View on SageOne PMS
AMC View
SageOne focuses on investing in fast-growing, high-quality businesses for the long term. CIO Samit Vartak has developed his investment credentials at SageOne and has almost a decade of experience, making him a seasoned investor. With a strong research team and investment philosophy, SageOne PMS is a good option for investors looking for mid and small-cap exposure.
AMC Pedigree
The pedigree of an FM-founded PMS, such as SageOne, is driven by the FM and their team. SageOne is led by Samit Vartak, who has a decade of experience in private equity and corporate strategy.
Team Pedigree
Samit Vartak has a solid investment background and is backed by a research analyst team with adequate experience. However, there has been senior-level turnover at SageOne, with co-founders Manish and Kuntal leaving in 2016.
Investment Philosophy
Investment philosophy focuses on building high-conviction portfolios of high-quality businesses with strong fundamentals and sustainable competitive advantages. They seek companies demonstrating superior growth (often targeting 20%+ compounded earnings growth) led by clean and competent management.
AMC Background
SageOne was founded in 2012 by Samit Vatrak, an investment professional with credentials in private equity and corporate advisory. SageOne applied for a PMS license in 2017, and launched their first offering Sage One Diversified Portfolio in Jan-2017. They have since launched a small/micro-cap PMS & large-cap portfolios, along with AIF strategies. Via SageOne, Samit aims to bring the longer-term private equity approach style of investing to listed equities. Key Strengths in Mid and Small-Cap Space SageOne is headed by Samit Vatrak (with strong credential in private equity & corporate strategy) who has developed his investment credentials over the past decade at Sage one. Supported by a strong research team and a strong philosophy, SageOne PMS is a good AMC for investors seeking mid & small-cap exposures.Investment Philosophy
The SAGE acronym helps define the type of companies that SageOne seeks to invest in – Sustainable, Accountable, Growth-oriented and Efficient. The aim is to invest in high-conviction growth businesses that have a sustainable competitive advantage and are run by clean and competent management at reasonable valuations. The focus is on investing in superior businesses, and SageOne will not invest in a weak business irrespective of how attractive the valuations may appear.Investment Philosophy Built On
- Superior Growth: minimum 20% compounded earnings growth at individual level and 25% at portfolio level
- Market Share Gains: to contribute to incremental growth in earnings
- Profitability: strong and profitable businesses with >20% ROEs to fund growth internally
- Capital Allocation: incremental ROE higher than existing ROEs
- Efficient Moat: most efficient players industries (leaders or expected leaders due to superior strategy and positioning)
- Reasonable Valuation: SageOne will not invest in a weak business irrespective of how attractive the valuations may appear.
Risk Management
- Prudent Stock Selection: driven by financial and business analysis, internal forensic model to eliminate questionable business practices and management, and portfolio construction to minimise non-systemic risk
- Sectoral and Stock Limits: Maximum 25% exposure to a sector and maximum 20% exposure to any business group
- Timely Rebalancing: Active calls on liquidity based on external risk factors (macro, market volatility and valuations)
- Active Monitoring and Action: Strong network across industries for channel checks. Active entry/exit on changing business dynamics.
Investment team
Samit Vartak | 4-star rated FM
Founder & CIO | 27 yrs Experience | 14 yrs at current firm
Past Experience: Axis PE (VP), Ernst & Young (Associate Director)
Samit is the Founding Partner & CIO of SageOne. He has experience in Private Equity (at Axis PE Fund) and Corporate Strategy, Investment Banking and Business Valuations in the US (at E&Y and Deloitte).
