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Partners in your growth

At Astute, we work towards long term sustainable wealth creation through investment in equities. We deliver returns for our clients by thinking differently and spotting investment opportunities ahead of the crowd. Governed by values and driven by commitment, we believe in long term relationships built on trust and mutual growth.

Our values

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About us

Astute Investment Management Private Limited, erstwhile Aries Stocktrades Private Limited, was incorporated in 1995 and it began its operations by offering Equity Broking on the National Stock Exchange (NSE). In 2008, the company got the Portfolio Management Services (PMS) certification from SEBI and by 2011, the company was offering Equity Broking on the Bombay Stock Exchange (BSE) as well. Between 1995 and today, Indian markets have witnessed a sea change and the company has grown along with the dynamic, evolving markets. In the future, the focus of Astute Investment Management will be on managing clients’ wealth by investing in Indian public equities through PMS.

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Investment philosophy

At Astute Investment Management, we believe in long term value investing, where we look at an investment horizon of at least 2-3 years. We focus on bottom-up stock picking using fundamental research. We look at buying equity shares of a company as buying a piece of its business. The 3 most important aspects that we focus on are:

1. Business

  • Business should have good long term prospects and an economic moat (sustainable competitive advantage over other businesses in the same industry and which acts as an entry barrier to competition)
  • Scalable business opportunity with a huge opportunity for the company’s products and services in the future
  • Easy to understand and more predictable over the longer term – not too many variables or moving parts which can affect the performance of the company
  • Generating cash or ability to generate considerable degree of cash without having to resort to much external capital (in the form of equity or debt) and the company does not need to keep reinvesting a good amount of this cash to generate the same income
  • Company among the leaders in its industry or has a differentiated business model or operates in its own niche area
  • Industry growing fast and/or company growing faster than the industry
  • Company’s financial ratios (ROE – Return on equity, ROCE – Return on capital employed) may be already good or we expect them to get better over time due to some catalyst in the company or industry
  • We prefer companies whose business is dependent on free market prices (where the company can exercise pricing power) and not subject to government interference and regulations on an ongoing basis

2. Management

  • Desire and capability (with the required qualifications, experience and passion) to scale up the business profitably
  • Good past track record of capital allocation in their business
  • Importance given to corporate governance
  • Have accountability to shareholders and run their business with financial discipline and where they can generate higher return on capital than the cost of capital on a consistent basis
  • Have not diluted their equity in the past or done so to a minimal level
  • Where they payout reasonable amount of dividend to shareholders or have ability to do so in the future

3. Valuation

  • While a company may meet the criteria of good business and management, it should also be trading at cheap or reasonable valuations (on the basis of market cap to sales; enterprise value to ebitda; price to earnings etc)
  • The company’s stock should not discount the future too far out and have lofty expectations built into the price and there should be a margin of safety (in case things don’t play out as per our expectations)
  • As it’s said that beauty lies in the eyes of the beholder, valuation is a very subjective thing and we try to gauge sentiment surrounding the company and would be generally more interested if people are skeptical of the company and the stock is pricing very limited growth or profit potential in the future and we believe that the market is underestimating the future potential

We invest with a preference for mid to small sized companies. We believe that a portfolio should not have more than 8-12 stocks, which we believe provides enough diversification. We track the developments in the companies and their respective industries, without being too affected by short term stock price movements. We don’t believe in churning the portfolio to generate brokerage. We let compounding do the work for us. If we do not find attractive investment opportunities, we are fine with holding some degree of cash in our portfolios as we would like to keep some powder dry in case we come across some investment opportunities at bargain prices. We would always do what is in the best interest of the client to create wealth for our clients over time.

Management team

Ajaya Jain – Director

Abhaya Jain – Director

Saurabh Jain – Director & Chief Investment Officer

Ajaya Jain and Saurabh Jain are actively involved in the management and day-to-day affairs of the company and between them, they have over 34 years of cumulative experience in the Indian capital markets.

Services

Portfolio Management Services

At Astute Investment Management, we offer discretionary Portfolio Management Services (PMS), which means that the choice as well as the timing of investment decisions will rest with the Portfolio Manager and as is agreed in the investment management agreement.

‘Multiplier’ strategy

Our flagship strategy under discretionary PMS called ‘Multiplier’ aims at capital appreciation in the medium to long term through investment in equities. Even though ‘Multiplier’ is multi-cap oriented, there is a bias towards investing in mid to small cap companies which are under-researched and under-owned and those which offer significant growth prospects. We are sector agnostic and look for opportunities in all sectors provided the companies meet our criteria. We believe that good investments (provided you have a strong filter) are only a few in a year and we would like to focus only on one strategy where stocks which meet our criteria (taking into account the risks) are bought for portfolios under this strategy. We are not of the belief that there is a need to have different strategies (depending on the flavor of the season or what is hot or fashionable) just to be able to raise more money from clients. There is a need for only one strategy which we believe more than adequately covers all investment opportunities that we may come across.

Features of PMS strategy ‘Multiplier’

  • Minimum investment of Rs 25 lakhs
  • Various statements (Portfolio performance statement, Holding statement, Transaction statement etc) on a quarterly basis
  • Investments in this strategy will be only as per SEBI’s rules and regulations on PMS
  • The securities/funds will be held in the name of the client

Performance track record

As on 30th June 2017

Since inception, the ‘Multiplier’ PMS Strategy has delivered a CAGR of 20.7% vs. BSE Sensex returns of 6.9% (an outperformance of 13.8% CAGR) and BSE Small Cap returns of 6.4% (an outperformance of 14.3% CAGR).

Rs 1 crore invested in the ‘Multiplier’ PMS Strategy on 25th April 2008 (Inception date) has grown to Rs 5.61 crore on 30th Jun 2017 as against Rs 1.85 crore and Rs 1.76 crore had it been invested in the BSE Sensex and BSE Small Cap respectively.

 

*Data source: Capitaline

Please Note:
The above strategy returns are of a model client’s portfolio which is our oldest client (from inception date) and we feel is the best representative client for our ‘Multiplier’ PMS Strategy. The longer the time period somebody has invested with us, usually the better the returns would be as newer portfolios take time to build up. The returns of a model client’s portfolio is calculated post all fees and expenses and includes dividend and the returns have not been affected by addition/withdrawal of funds to original invested amount. Returns of individual clients may differ depending on time of entry into the strategy. Past performance is no guarantee of the future returns to the client. For calculating BSE Sensex and BSE Small Cap returns, price indices are taken.

Contact us

Astute Investment Management Private Limited

117, Maker Chambers-VI, Nariman Point,
Mumbai – 400 021, India.
P : +91 22 2287 2646 / 2647
E : info@astuteinvestment.in

Disclaimer
The information and opinions given herein have been compiled from public information and sources believed to be reliable and in good faith, but no representation or warranty is made as to their correctness or completeness. Investment in securities is subject to market risks, and the Portfolio Manager guarantees neither returns nor preservation of capital. Past performance is not indicative of future performance. Investors need to evaluate investments with their own financial goals and in consultation with their independent advisors. Portfolio Manager is not liable for any loss resulting from operations of the portfolios. Please read the disclosure document carefully before investing.

Registration Numbers
CIN: U67120MH1995PTC090075
SEBI Regn Nos: PMS – PM/INP000002536, NSE Cash / NSE F&O / BSE Cash – INZ000005934
In case of grievances, please write to grievances@astuteinvestment.in

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