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Emkay 12

Scheme Rating

IME Scheme Rating

3 of 5 stars

Can be considered for Investing: The level of concentration makes it an interesting option for investors seeking concentrated large-cap exposures in their portfolios.

IME Strategy Rating

3 of 5 stars

Large-Cap Focused: Emkay’s 12 employs a focused large-cap strategy, featuring an equally-weighted portfolio of 12 stocks. The portfolio mitigates ‘selection bias’ and ‘allocation bias’ by employing the “smart alpha” approach for ensuring robust risk management. It is a highly concentrated approach to large-cap investing. 12-equal weighted stocks do lead to a high level of concentration that can lead to outperformance if the selected stocks do well.

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 Emkay 12

Type: Large Cap | GARP | AUM (22.7 cr) | Inc Date (01 May 2019)

Emkay Emkay's 12 - Investment Strategy

Concentrated exposure on 12 large cap stocks

Emkay PMS’s 12 Strategy is a concentrated 12-stock large-cap strategy, built with equal weights across the 12 stocks to help eliminate selection & allocation biases. The 12 stocks are identified from an initial 100 large-cap universe, by running these 100 stocks through earnings growth, investment themes, core investment framework, and valuation filters.

Investment Strategy

In order to select these 12 stocks and mitigate allocation biases certain filters characters are ensured:

  • Risk Management: building a portfolio having equal weightage by reviewing a stock when there is a price movement of >15% in a month. Also focusing on the liquidity risk with no use of leverage. There will be a monthly portfolio review. 
  • Diversification across industries and companies: Ensuring a single sector exposure of <40% and a single stock exposure of <10% also a turnaround or special situation stocks exposure of <20%
  • Focus on large-cap companies: Investing in top 100 companies by market capitalization. 
  • Earnings growth and quality filter: ensuring companies that are invested into have ROCE>COE and their earnings growth> GDP growth. 

 

 

Focusing on companies that have a strong risk management strategy with a focus on capital preservation

Investment Process

To mitigate a selection bias by following a rigorous framework from a universe of more than 500 listed companies. In order to filter these companies the framework followed is:

Market Cap Filter: Filtering out 100 companies focusing on large cap only. 

Earnings Growth Filter: Focusing on businesses that have a strong historic and future growth stocks defined by businesses having ROCE>COE and their earnings growth> GDP growth. 

Investment Theme Filter: Filtering 80-90 companies that follow themes of value migration, Domestic consumption and domestic infrastructure. 

Core Investment Framework: Filtering 50-60 companies that have strong leadership in terms of Market share/ profit share/cost/growth/product. These companies should also have strong management credentials in terms of visions, track record and growth

Valuation: Focusing on 30-35 companies by looking at price-value gap through DCF with focus on marging of safety. Also having a comparative valuations, Mcap vs opportunity size, PEG ratio.

Trailing Performance

1yr 3yr 5yr Since Inception
Emkay 12 27.8 11.3 14.5 14.7
S&P BSE 500 TRI 41.1 18.4 22.4 17.1
Alpha over Broad Mkt BM -13.3 -7.1 -7.9 -2.4
Nifty 50 TRI 33 14.9 19
Alpha over Category BM -5.2 -3.6 -4.5

Performance as of: 30-Sep-24 | Inception Date: 01-May-19

Fund Managers

Kashyap Javeri | 3-star rated FM

Fund Manager | 21 yrs Experience | 4 yrs at current firm

Past Experience: Research Anayst(Emkay advisors)

Kashyap Javeri is a Fund Manager with more than a decade of experience in company and sector research. He brings exceptional insights into stocks and economy. Prior to joining Emkay Investment Managers, he was a rated BFSI analyst in Emkay Institutional Equities for eight years, and also worked with Sharekhan Ltd. as a midcap analyst. Kashyap brings with him immense in-depth knowledge not only in a variety of manufacturing and services sectors, but also in banking and economics.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures
Exit Fees1yr(3%), 2yr(2%), 3yr(1%)

AMC

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

Can be considered for investment: With strong broking credentials, Emkay PMS follows a strong process-oriented approach to investment management. While we would have preferred to see a higher mid-cap focus (Emkay is known more for its mid-cap strengths as a brokerage), we do like the very clearly articulated and followed fundamental process frameworks that are used to build the portfolios.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

2 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

3 of 5 stars

Performance

2 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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