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Sundaram Alternates Voyagers

Scheme Rating

IME Scheme Rating

3 of 5 stars

Reasonable Investment Option: Sundaram Voyager 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

Concentrated Flexicap Strategy: Sundaram Voyager has aged well with its multi-cap, core and satellite strategy. The investment philosophy and strategy are well-defined around concentration, market-cap allocation, style, fundamentals and key themes to invest in.

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 Sundaram Alternates Voyagers

Type: Flexi Cap | GARP | AUM (339.1 cr) | Inc Date (1 October 2011)

Investment Strategy

Voyager Portfolio is a multi-cap concentrated portfolio of 20 stocks aiming to seek long-term capital appreciation by investing across market caps that are reasonably priced.
 
Voyager follows a Core and Satellite approach.
  • Core Portfolio (75% allocation): Asset-light business models that have an established track record, efficient capital allocation and scalable growth opportunities | invest in structural stories
  • Satellite Portfolio (25% allocation): high-growth stocks including cyclical | invest in cyclical and turnaround opportunities

Indicative market cap allocation: 40% large cap, 40% mid cap and 20% small cap

Investment Philosophy

Sundaram Voyager follows a “3Q” approach to identifying investment opportunities.

  • Business: Seeking good businesses that generate higher cash returns and can be reinvested 
  • Financial: ability to double earnings in 3-5 years | Focus minimum 15% ROIC | Strong cash conversion of 50%+ | Reasonable leverage with debt to equity <0.5x
  • Promoters/Management: focus on past execution track record, vision of management is, capital allocation efficiency, promoter holding and pledge, ESOPs, and contingent liability or related party transactions

Identified Investment Themes

  • Consumer Discretionary: growing disposable income, rising middle-income class and demographics
  • Financial Services: driven by financial inclusion and market share shift towards pvt sector
  • Make In India: driven by China de-risking, labour arbitrage across sectors 
  • Digital Economy: driven by large internet user base, increasing online penetration, and demographics

Trailing Performance

1yr 3yr 5yr Since Inception
Sundaram Alternates Voyagers 38.2 12.1 23 20.5
S&P BSE 500 TRI 41.1 18.4 22.4 16.3
Alpha over Broad Mkt BM -2.9 -6.3 0.6 4.2
Nifty 500 40.2 17.2 21
Alpha over Category BM -2 -5.1 2

Performance as of: 30-Sep-24 | Inception Date: 01-Oct-11

Fund Managers

Madanagopal Ramu | 3-star rated FM

Fund Manager | 19 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.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% fixed + 20% above 10% hurdle
Exit Fees1yr(1%)

AMC

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

Not a top recommendation due to being an MF-driven PMS: Sundaram Alternates PMS is a mature PMS provider and with a known specialisation in small-and-mid caps. While it is slightly more differentiated than some of its larger AMC-founded PMS peers, it does suffer from MF-promoted PMS ailments (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies), which is why we typically prefer owner-managed PMS providers instead. However, it does have its own positives- (a) long-track records of core portfolios -- each of which has over a decade of performance (b) differentiation in terms of mid-and-small caps (c) more PMS-like strategies - higher concentrations & differentiated portfolios.

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

3 of 5 stars

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