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Stallion Core

Scheme Rating

IME Scheme Rating

3 of 5 stars

Good High Risk-Reward Option: Stallion has recently crossed the 5-yr mark since inception. The fund has been able to demonstrate consistent performance on their momentum based investment approach. We accordingly recommend the fund to investors with higher risk appetite given the investment philosophy and the higher churn in the portfolio.

IME Strategy Rating

3 of 5 stars

Monopoly Focused Strategy: The Strategy structures its portfolio into two categories, allocating 40-60% to Proven Monopolies and Emerging Monopolies. The fundamental objective is to invest in businesses that have a track record of leadership in their sector and are poised to sustain their leadership. This is a clearly articulated investment strategy focused on momentum trading.

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 Stallion Core

Type: Flexi Cap | GARP | AUM (1318.6 cr) | Inc Date (22 Oct 2018)

Stallion Asset Core Fund- Investment Strategy

Stallion Asset – Core Fund is a multi-cap strategy. A combination of top-down and bottom-up approaches for picking stocks and sectors.

Invest in 2 kinds of Business
  • Proven Monopolies (40-60% allocation): Asset light businesses which don’t need capital to grow and that can reinvest all free cash flows at high ROIC with strong competitive advantages.
  • Emerging Monopolies (40-60% allocation): These are companies with low market share in large markets. The team aims to identify such opportunities early.
Focus on 4 sectors: Financials & Consumer Tech are chosen as they create alpha in bull market and Consumer and pharma will protect during bear market.
 

Investment Approach

Focus on 4Ms:
  • Market Leadership: Focus on monopolies
  • Management: evaluated based on capital allocation and capital distribution among other aspects
  • Market Opportunity: Invest in companies that address a market that is large enough to allow investments to grow 4-5x without needing to compete
  • Margin of Safety: Do not use PE Ratio’s instead focus on Capital Allocation & Distribution
Businesses Avoided
  • Businesses that don’t have recurring revenue or get revenues from govt/project business
  • Commodity like businesses that get worse with size
  • Businesses with a growth rate less than Cost of Capital
  • Hold on to looser for a Long time.
Avoid:
  • Commodities
  • Land Bank Play
  • Bad Promoter
  • Valuation Arbitrage
  • Government Businesses (B2G or G2B)

RISK MANAGEMENT

Exit from Core Stocks/ Sell
  • Change in Expected growth rate
  • Incremental return of capital employed
  • Competitive Advantage Period
  • Cost of Capital

Trailing Performance

1yr 3yr 5yr Since Inception
Stallion Core 76.6 25.6 31.9 29.4
S&P BSE 500 TRI 39.5 19.5 19 18.5
Alpha over Broad Mkt BM 37.1 6.1 12.9 10.9
Nifty 500 38.4 18.1 17.5
Alpha over Category BM 38.2 7.5 14.4

Performance as of: 28-Feb-23 | Inception Date: 22-Oct-18

Fund Managers

Amit Jeswani | 3-star rated FM

Founder & CIO | 14 yrs Experience | 6 yrs at current firm

Amit Jeswani is a CFA Charter holder and CMT. He has over 14 years of in capital markets. He is an active member of the Association of Technical Market Analyst and Indian Association of Investment Professionals.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% fixed + 15% above 10% hurdle
Exit Fees1yr(2%)

AMC

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

Good Niche Momentum-based investment style: With a higher-risk higher-churn momentum-tilted investment strategy, Stallion is a good option for investors seeking an investment style based around momentum investing. While the AMC is still relatively new, they have developed a reasonable presence for themselves on the back of consistent performance on a momentum investing style.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

3 of 5 stars

Performance

4 of 5 stars

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