SageOne Mid & Small Cap
SageOne PMS | Equity | | PMSIME's View on SageOne Mid & Small Cap
Strategy
Investment Fund
SageOne Mid & Small cap has a well defined investment strategy, and run by a team with a private equity background. However performance in recent years has been a bit subdued (even as longer-term performance remains strong), and performance volatility is a bit on the higher side. A 2 cr min investment may also prove to be a bottleneck for some investors. SageOne Mid & Small cap can be considered for investments by more aggressive investors.
Fund's Strategy View
SageOne Core Portfolio is a concentrated Mid & Small-cap strategy (~15-20 companies), that focuses on investing in the high-quality business with the potential for strong growth. This focus on high-quality high-growth companies, has been strongly folllowed over the years. The market cap focus is 3000 - 40,000 cr.
Fund Performance
Fund returns are largely in-line with category average returns over the past 5 years. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
IME's View on SageOne PMS
View on AMC
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's 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.
AMC Team
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.
Investment Philosophy
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.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| SageOne Mid & Small Cap | -8 | 23.5 | 25.5 | 17.7 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 15.5 |
| Alpha over Broad Mkt BM | -1.4 | 8.8 | 6.3 | 2.2 |
| Nifty Midcap 150 | -5.7 | 21.8 | 26.6 | |
| Alpha over Category BM | -2.3 | 1.7 | -1.1 |
Performance as of: 30-Sep-25 | Inception Date: 22-Jan-17 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
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).
