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Ambit Emerging Giants

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

Small-Cap Strategy: Focused on only investing in small caps with market-dominating franchises and a track record of clean accounting, governance and capital allocation, Ambit’s Emerging Giant’s PMS helps reduce a large part of the risk of investing in small caps. The Strategy focuses on investing in 15-20 businesses with minimal or zero leverage and ethical, prudent management. For small-cap investments, the emphasis is on the quality of business and management, a paramount aspect for Ambit

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 Emerging Giants

Type: Small Cap | GARP | AUM (354.2 cr) | Inc Date (1 Dec 2017)

Ambit Investment Advisors Emerging Giants- Investment Strategy

Ambit PMS’s Emerging GIants portfolio aims to invest in small-cap companies with market-dominating franchises and a track record of clean accounting, governance and capital allocation.

Power of the Giants 

These companies are selected on the basis of:

  • Rigorous business selection process
  • Long term horizon 
  • having a low churn and concentrated portfolio 

Investment Philosophy 

Following a risk minimization philosophy: 

  • Consistent track record 
  • Strong Corporate governance 
  • Market leaders 
  • Clean accounting 
  • Power of compounding

INVESTMENT PROCESS

Filter companies based on two factors:

  • Qualitative factors: Incremental Capex year-on-year, sales growth, PBIT margin, efficiency in capital employed turnover, D/E, equity dilution, CFO.
  • Quantitative factors: Sebi defined small-cap companies, median market-cap Rs.4700 cr, the efficiency of capital allocation, quality of accounts, bottom-up research, and concentrated portfolio of 15-20 companies leading to the low churn of 15-20%.

Trailing Performance

1yr 3yr 5yr Since Inception
Ambit Emerging Giants 11.5 14.7 26.5 16.9
S&P BSE 500 TRI 41.1 18.9 22.9 16.6
Alpha over Broad Mkt BM -29.6 -4.2 3.6 0.3
Nifty Smallcap 250 52.3 27.1 32.6
Alpha over Category BM -40.8 -12.4 -6.1

Performance as of: 31-Aug-24 | Inception Date: 01-Dec-17

Fund Managers

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 churn: 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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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.

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