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Sundaram Alternates S.E.L.F

AUM (717 cr) | Inc Date (1-Jun-2010)

Scheme Rating

IME Scheme Rating

3 of 5 stars

Sundaram SELF is a reasonable investment option amongst Flexi-cap funds, having a long track record and benefiting from Sundaram’s niche of South-based small&mid-cap companies.

IME Strategy Rating

3 of 5 stars

Tightly defined strategy in terms of focus themes, asset-light, and free cash-generating business. Strategy fairly closed followed in actual practice. A moderate level of diversification (20-25 stocks) is reasonable given the higher volatility of mid-caps. The strategy focuses on themes – consumer discretionary, financial services, chemicals, and cement. The strategy has matured successfully with its flexi-cap strategy, focusing on mid and small-cap companies positioned to transition into the large and mid-cap segments.

AMC Rating

3 of 5 stars

AMC: Sundaram Alternates PMS (click link for detailed AMC review)

Sundaram Alternates PMS is a mature provider specializing in small-and-mid caps. While it is differentiated from larger AMC-founded PMS providers, it suffers from MF-promoted PMS issues. Owner-managed PMS providers are typically preferred. However, Sundaram Alternates PMS has long-track records, differentiation in mid-and-small caps, and PMS-like strategies with higher concentrations and differentiated portfolios.

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).

Investment Philosophy

Sundaram PMS’s SELF (Sundaram Emerging Leadership Fund) strategy is a mid-cap (stocks less than 50,000 cr mkt cap) with a moderate level of concentration (20-25 stocks). It seeks to invest in companies that have the potential to transition from small-cap > mid-cap > large-cap, with a focus on asset-light and high cash flow generating businesses. The strategy also focuses on 4 specific themes – consumer discretionary, financial services, chemicals & cement.

Sundaram self aims to generate capital appreciation with investment in mid and small cap companies across sectors with around 25 stocks by following its “3Q” approach to stock selection:

  • Quality of business: Scalability, self sustaining business models, Differentiating factors in business
  • Quality of financials: Ability to double earnings in 4-5 years, min-ROIC of 15%, OCF/EBITDA>50%, D/E< 0.5x.
  • Quality of Management: Track record, vision, high sustainable growth, identifying and investing in profitable opportunities, good corporate governance

Trailing Performance

1yr 3yr 5yr Since Inception
Sundaram Alternates S.E.L.F 6.3 8.5 25.4 16.6
S&P BSE 500 4.8 12.3 24.8 12.6
Alpha over Broad Mkt BM 1.5 -3.8 0.6 4
S&P BSE 500 4.8 12.3 24.8
Alpha over Category BM 1.5 -3.8 0.6

Performance as of: 31-Mar-25 | Inception Date: 01-Jun-10

Fund Managers

Madanagopal Ramu | 3-star rated FM

Fund Manager | 20 yrs Experience | 7 yrs at current firm

Past Experience: Centrum (Analyst), PFC (Project Finance)

Having joined Sundaram as a research analyst in 2010, Madangopal went on to become the Head of Research and co-manager of a number of the Sundaram AMC funds. He joined the PMS division in 2018.

Karthik Athreya | 4-star rated FM

FM | 27 yrs Experience

Past Experience: Altico Capital, Clearwater Capital, Rabo, Arthur Andersson, PWC, Yes Bank

Karthik Athreya is in charge of the Alternative Financing strategy at Sundaram AMC. He has almost 22 years of expertise in corporate finance, investment banking, and principal investing. Prior to this, He established Altico Capital and oversaw Clearwater Capital’s India division. He worked at Rabo, Arthur Andersson, and PWC before becoming a founding employee of Yes Bank.

Fee Structure

Fee Structure Fee
Fixed Fee Structure 2.5
Variable Fee Structures 1.5% fixed + 20% above 10% hurdle
Exit Fees 1yr(1%)

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