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ASK Emerging Opportunities

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Not under coverage: This scheme is currently not under our coverage universe.

IME Strategy Rating

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 ASK Emerging Opportunities

Type: Mid & Smallcap | GARP | AUM (730.9 cr) | Inc Date (24 Aug 2017)

Investment Philosophy

ASK Emerging Opportunities Series 2 is a mid-cap focussed (15000 Cr+ market cap) concentrated portfolio.

ASK’s investment philosophy revolves around 2 key aspects: capital protection followed by capital appreciation. The aim is to invest in high-quality businesses, run by high-quality management with sustained long-term growth prospects at a reasonable price. The focus is on certainty & consistency of earnings (vs. mere quantum of earnings growth) & buying high quality at a reasonable price (vs. buying mediocre companies at value prices).

KEY ASPECTS OF INVESTMENT PHILOSOPHY

Investments in ASK India Select Portfolio are driven by the following key investment attributes:

  • Size of Opportunity: Size of Pond vs. Size of Fish, Dominance, Resilience, Liquidity
  • Quality of Business: High quality of business (superior ROCE), Strong moat, Impregnability, Sustainability, Key pivot of strong wealth creation 
  • Earnings Growth: Quantum, Consistency, Durability, Predating (early vs later), Compounding power
  • Value: Favourable price-value gap, Margin of Safety
  • Management Quality: Good management quality is a given constant

PORTFOLIO CONSTRUCTION

  • Research: filter down top 500 companies as per market capitalisation to 95 companies based on subjective evaluation of management quality, minimum ROCE, 20% growth rate over 3-5 years.
  • Portfolio: 25-30 companies with a 10% individual stock exposure limit (at cost), sectoral diversification and a healthy balance between ROCE and Earnings Growth.

INVESTMENT PROCESS

  • Market Capitalization Filter: Filter top 500 stocks as per market capitalization
  • Management Quality Assessment: Based on evaluation of management integrity, vision, execution, capital allocation skills and capital distribution filter out 310 Companies
  • ROCE Criteria: Filter 230 companies based on a minimum of 15% ROCE
  • Earnings Growth Criteria: Filter 95 stocks with minimum 20% annual earnings growth over the next 3-5 years.
  • Overall Quality with Margin of Safety: Final portfolio of 25-30 stocks with an optimal blend of overall characteristics with a reasonable margin of safety.

Trailing Performance

1yr 3yr 5yr Since Inception
ASK Emerging Opportunities 31.8 11.7 18.6 14.4
S&P BSE 500 TRI 41.1 18.4 22.4 17.1
Alpha over Broad Mkt BM -9.3 -6.7 -3.8 -2.7
Nifty 500 40.2 17.2 21
Alpha over Category BM -8.4 -5.5 -2.4

Performance as of: 30-Sep-24 | Inception Date: 24-Aug-17

Fund Managers

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures
Exit Fees

AMC

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

Highly recommended for more conservative investors: ASK has a number of positives, which has led to them becoming the market leader. Strict adherence to a clearly defined investment policy, along with a strong & stable in-house grown investment team, is what helps set them apart and deliver consistent and attractive long-term returns. The majority stake (75%) of ASK's asset management business was acquired by Blackstone in Feb-22. We have recently downgraded ASK's rating to 4-star, keeping in mind the sharp underperfomance since 2022 (which we believe should be transitory in nature). As performance comes back, ASK's rating could be upgraded to a 5-star.

AMC Rating

4 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

3 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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