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SageOne Mid & Small Cap

Scheme Rating

IME Scheme Rating

4 of 5 stars

May be suitable for more aggressive investors: 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.

IME Strategy Rating

5 of 5 stars

Concentrated Mid & Small-cap Strategy: 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.

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 SageOne Mid & Small Cap

Type: Mid & Smallcap | GARP | AUM (3355 cr) | Inc Date (22 Jan 2017)

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 75.4 22.1 27.3 20.9
S&P BSE 500 TRI 38.3 20 20 18.1
Alpha over Broad Mkt BM 37.1 2.1 7.3 2.8
Nifty Midcap 150 55.4 27.1 26.8
Alpha over Category BM 20 -5 0.5

Performance as of: 30-Jun-24 | Inception Date: 22-Jan-17

Fund Managers

Samit Vartak | 4-star rated FM

Founder & CIO | 26 yrs Experience | 13 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).

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.25% fixed + 12% above 10% hurdle
Exit Fees1yr(3%), 2yr(2%), 3yr(1%)

AMC

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

Small & Mid-cap Specialist AMC with a strong track: SageOne has a clear investment philosophy that focuses on investing in fast growth & high-quality businesses for the long run. Their CIO Samit Vartak has developed his investment credentials at SageOne, and with close to a decade's track record he may now be considered a seasoned investor. Supported by a strong research team and a strong philosophy, SageOne PMS is a good AMC for investors seeking mid & small-cap exposures.

AMC Rating

4 of 5 stars

AMC Pedigree

4 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

4 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

4 of 5 stars

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