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Ambit Coffee Can

Scheme Rating

IME Scheme Rating

3 of 5 stars

Investment Option: Would recommend that investors seeking to invest in this strategy invest instead with the strategy’s original team who now runs a similar strategy at Marcellus.

IME Strategy Rating

5 of 5 stars

Strategy focused on High Quality Franchises: Ambit’s Coffee Can Portfolio follows its philosophy of only investing in the highest quality business franchises (often disregarding valuations). It focuses on high-quality franchises that can sustain their competitive advantages over long periods of time, regardless of the disruptions that they may face. This strategy has also demonstrated the ability to deliver sustained out-performance.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Ambit Coffee Can

Type: Large & Midcap | GARP | AUM (1101 cr) | Inc Date (20 Jun 2017)

Ambit Investment Advisors Coffee Can-Investment Strategy

Focus on high quality business that can sustain over long period regardless of disruption they face

While most companies are exposed to disruptions, there are a handful of Indian companies in India that have the capability of delivering consistent 15%+ earnings growth, regardless of the disruptions that they face. Ambit’s Coffee Can Strategy focuses on such high-quality franchises that can sustain their competitive advantages over long periods of time, regardless of the disruptions that they may face.While most companies are exposed to disruptions, there are a handful of Indian companies in India that have the capability of delivering consistent 15%+ earnings growth, regardless of the disruptions that they face. Ambit’s Coffee Can Strategy focuses on such high-quality franchises that can sustain their competitive advantages over long periods of time, regardless of the disruptions that they may face.

Search for these high-quality franchises are driven by: 

  • Seeking for companies having unique DNA: Focused on core business, IT as a backbone, Independent board, Professional management, Evolving competitive advantage
  • Consistent returns with minimal risk
  • Investing in companies that have consistent earnings rather than volatile earnings
  • Holding it forever (as long as its competitive strengths sustain) rather than just timing it well. 

Coffee Can Success Pillars driven by: 

  • Lower drawdowns during downturns 
  • low churn 
  • Timing is futile 

KEY TENETS

  • Consistent track record: Excellent financial track record of revenue and earning growth for over 10-20 years.
  • Long-term wealth creation: Intends to provide 20-25% earnings CAGR over the long term with a volatility of portfolio similar to govt bonds-holding period>3 years.
  • Low churn: Highly concentrated portfolio with 10-15 stocks and intended churn of less than 1 stock per year.
  • Timing market: Avoid attempting to time markets.
  • Market leaders: Select companies which are leaders in B2C sectors and those that dominate their market and possess an impenetrable competitive advantage.

Trailing Performance

1yr 3yr 5yr Since Inception
Ambit Coffee Can 18.1 10.3 15.6 14.6
S&P BSE 500 TRI 34.7 18 18 14.4
Alpha over Broad Mkt BM -16.6 -7.7 -2.4 0.2
Nifty 500 33.8 16.9 16.6
Alpha over Category BM -15.7 -6.6 -1

Performance as of: 31-May-24 | Inception Date: 20-Jun-17

Fund Managers

Manish Jain | 3-star rated FM

Fund Manager | 17 yrs Experience | 6 yrs at current firm

Past Experience: Analyst (Nomura, Lehman Bros, Enam, ICICI Sec, Motilal)

Manish has a strong research foundation, having worked as a research analyst at Nomura, Lehman Bros, Enam, ICICI Sec and Motilal. His core areas of research focus have been on the consumer & auto sectors. Manish joined Ambit in Dec-2018 as a PMS FM.

Aishvarya Dadheech | 3-star rated FM

Fund Manager | 17 yrs Experience | 6 yrs at current firm

Past Experience: Reliance Life Insurance (FM), CRISIL (Equity Analyst)

Prior to taking over as FM of the PMS portfolios, Aishvarya used to manage Ambit Group’s proprietary funds. Prior to joining Ambit, Asihvarya was an Equity FM at Reliance Life Insurance and Equity Analyst at CRISIL.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures0% fixed + 15% no hurdle
Exit Fees

AMC

AMC: Ambit PMS (click link for detailed AMC review)

Not a top recommendation (at this time) due to the FM Chunk: Ambit PMS is essentially in a rebuild mode, after the top leadership of the investments team left to set up Marcellus in 2018. It will take some time for the PMS to stabilise under the new investment team, and until then investors seeking to invest in the good-and-clean companies (for which Ambit is known) would probably be better off investing at Marcellus (who follow essentially the same strategy).

AMC Rating

3 of 5 stars

AMC Pedigree

4 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

2 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

5 of 5 stars

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