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White Oak Digital Leaders

Scheme Rating

IME Scheme Rating

3 of 5 stars

A call on the specific theme: We typically do not recommend Thematic funds to investors, since it requires getting in and out of the theme at the right time. Typically a strong contra approach (investing in themes when they are out of favour, and getting out when they are popular) leads to better performance, but this is very hard to actually implement in practice given strong behavioural instincts against such an approach (investors often end up entering themes post a run-up, which can often be the worst time to invest). In our view, thematic funds are primarily suitable for more astute investors who have a deep underlying understanding of the investment merits of the theme.

IME Strategy Rating

3 of 5 stars

Diversified Thematic Strategy: White Oak India Digital Leaders focuses on companies that are emerging as leaders in the digital space through innovation and technology implementation in their respective sectors. The portfolio focuses on large and mid-cap comprises 40-60 companies. While we understand the merit/impact of technology and innovation across sectors, we believe the strategy has a very broadly defined digital mandate. This allows for many sectors/companies to be included that wouldn’t normally be considered “digitally native” diluting the mandate. Would have ideally preferred a more narrow tech focus.

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 White Oak Digital Leaders

Type: Others | Thematic | AUM (115.9 cr) | Inc Date (5 January 2022)

Investment Philosophy

RATIONALE FOR DIGITAL STRATEGY

  • Technology investments lead to 1) better financial returns (translates to higher rev and EBITDA per employee) and 2) productivity gains (cost savings for customers, safety and compliance, and net new jobs created)
  • Rising intangibles: High growth companies use high investment in intangibles to outgrow in the market. Intangibles have become the primary source of economic value in S&P 500 index. These companies have led large wealth creation over the past decade.

PORTFOLIO OVERVIEW

80% of the portfolio in companies that

  • Investing in new technologies like AI, Blockchain, Machine Learning, Augmented Reality (AR)/ Virtual Reality (VR);
  • Delivering world-class customer experience through new channels;
  • Enabling ‘Digital India’ and developing products for the digital ecosystem
  • Spearheading R&D in their respective sectors
  • Adding strong automation capabilities
  • Leaders in adopting technology in their businesses

WHITEOAK EVALUATION FRAMEWORK

The framework remains the same but tools evolve. WhiteOak continues to focus on Great Businesses (as characterised by superior returns on incremental capital, scalable long-term opportunity, and strong execution and governance) along with key characteristics of digital leaders (Building tech and facilitating innovation, new-age disruptive business models, and incumbents emerging as tech leaders via digital adoption and R&D).

Tools for evaluation: recurring usage, customer delight, ecosystems, and economics.

  • Superior returns on incremental capital: focus on unit economics, industry characteristics, nature of structural competitive advantage
  • Scalable long term opportunity: assessing TAM (total addressable market) and monetization opportunity
  • Strong execution and governance: trajectory of customer acquisition metrics, engagement metrics, quality of network, evolution of network characteristics

Trailing Performance

1yr 3yr 5yr Since Inception
White Oak Digital Leaders 29.2 5.1
S&P BSE 500 TRI 38.9 19.3
Alpha over Broad Mkt BM -9.7 -14.2

Performance as of: 31-Jul-24 | Inception Date: 05-Jan-22

Fund Managers

Prashant Khemka | 5-star rated FM

Founder & CIO | 26 yrs Experience | 7 yrs at current firm

Past Experience: Goldman AMC (CIO – Global EM Fund), State Street Global (FM)

Prashant founded WhiteOak in 2017 with an impeccable investment track record. Prashant was the CIO & Lead Fund Manager for the Goldman Sachs India Equity & Global Emerging Market Funds. These funds have won multiple global awards and accolades for consistent investment performance. Over Prashant’s tenure GS India Equity scaled to a $2.5 bn fund from scratch (delivering 266% gross returns vs 66% for the benchmark), while GS GEM scaled from $675 mn to $2.6 bn (with a 36% gross US $ return vs 13.1% for the benchmark).

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% + 20% over S&P BSE 500 Benchmark
Exit Fees

AMC

AMC: White Oak PMS (click link for detailed AMC review)

Highly recommended for more conservative investors seeking lower risk strategies: With the impeccable investment credentials of the founder & CIO, backed by a sound investment philosophy and a strong research team, White Oak is a solid choice for a PMS to deploy long-term capital.

AMC Rating

5 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

3 of 5 stars

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