Invest In Abakkus Emerging Opportunities: A Guide

Abakkus Emerging Opportunities Fund is an Alpha-focused asset manager investing in Indian equities. Founded in 2018 by Mr. Sunil Singhania, Abakkus Asset Manager LLP has a vision to become one of India's most reputable and successful asset managers. The company has launched multiple close-ended schemes, predominantly investing in listed Indian equities. Abakkus Emerging Opportunities Fund- I is a benchmark agnostic diversified portfolio comprising 30-40 companies with a bias towards mid and small caps. The fund follows a 15:15:15 discipline, investing in companies that qualify for at least 2 out of 3 criteria, including 15% earnings growth. With a bottom-up approach, Abakkus typically invests in the 2nd or 3rd player within a sector, available at a significant discount to the leader. The fund aims to generate alpha and wealth creation by investing with a typical 3-5 years holding period.

Abakkus Emerging Opportunities Fund-I: a Long Only Cat III AIF

Abakkus Emerging Opportunities Fund-I is a Long Only Cat III AIF with an inception date of 26 August 2020. It is a benchmark agnostic diversified portfolio of 30-40 companies with a bias towards mid and small caps. The fund follows a 15:15:15 discipline, investing predominantly in companies that qualify for at least 2 out of 3 criteria:

• 15% earnings growth
• 2nd or 3rd player within a sector, available at a significant discount to the leader
• Fundamentals-based ideas picked via a bottom-up approach

The fund is managed by Abakkus Asset Management LLP, founded by Sunil Singhania, who has over 25 years of experience in fund management. The fund follows the "MEETS" framework, which stands for Management, Earnings, Events/Trend, and Timings. This framework guides the investment strategy and decision-making process.

Abakkus Emerging Opportunities Fund-I aims to generate alpha and wealth creation by investing with a typical holding period of 3 to 5 years. The fund had received awards for its performance, including being ranked #1 in 2023 for the Best Long Only Cat III AIF on 3Y Risk-Adjusted Returns by PMS AIF WORLD, in association with IIM-Ahmedabad.

The fund is closed-ended and is no longer accepting money.

Abakkus Emerging Opportunities Fund: a Mid & Small Cap focused PMS

Abakkus Emerging Opportunities Fund is an Alpha-focused asset manager investing in Indian equities. Founded in 2018 by Mr. Sunil Singhania, Abakkus has a vision to become one of India's most reputable and successful asset managers.

The Abakkus Emerging Opportunities Fund has two structures: PMS and AIF. The fund is a benchmark agnostic diversified portfolio with a bias towards mid and small caps. The fund follows a 15:15:15 discipline, investing predominantly in companies that qualify for at least two out of three criteria:

15% earnings growth, being the 2nd or 3rd player within a sector, and fundamentals-based ideas picked via a bottom-up approach.

The fund typically invests in companies that are available at a significant discount to the leader in their respective sectors. It focuses on investing in small & mid-size companies with scalable business models and strong growth potential. Abakkus follows a bottom-up research approach, selecting portfolio companies with a focus on profit & loss statements, balance sheets, cash flow statements, and valuations.

The fund has a minimum investment requirement of ₹50 Lac and an exit load of 1.50% if redeemed within the first year. Abakkus charges a fixed fee of 2.50% and a variable fee of 1.75%. The profit-sharing structure is 15% above a 9% hurdle.

Abakkus Emerging Opportunities Fund has a strong track record, winning multiple awards for its performance. It is managed by a team of highly qualified individuals, including CFA charter holders, chartered accountants, and experienced fund managers.

Abakkus Emerging Opportunities Fund: a benchmark agnostic multi-cap portfolio

Abakkus Emerging Opportunities Fund is a benchmark agnostic, diversified portfolio that invests in 30-40 companies with a bias towards mid and small-cap. The fund was founded by Mr. Sunil Singhania in 2018 and is managed by Abakkus Asset Manager LLP, with the goal of becoming one of India's top-performing asset managers.

The fund follows a 15:15:15 discipline, investing predominantly in companies that qualify for at least 2 out of 3 criteria:

15% earnings growth, being the 2nd or 3rd player within a sector but at a significant discount to the leader, and fundamentals-based ideas picked via a bottom-up approach.

The fund typically invests in companies with scalable business models and strong growth potential, often being the first or only investor if it is convinced of the company's growth potential. Abakkus Emerging Opportunities also follows the "MEETS" framework, which includes checking the quality and track record of management, analysing capital expenditure and ROE, and monitoring stock price movements due to evolving market trends.

The fund has a minimum investment of ₹50 Lac and an exit load of 1.50% if redeemed within the first year. It has a fixed fee of 2.50% and a variable fee of 1.75%, with a profit-sharing structure of 15% above a 9% hurdle.

Abakkus Emerging Opportunities has a strong performance track record, with a 3-year return of 37.81% as of August 2024, and has won multiple awards for its risk-adjusted returns. The fund is well-positioned to generate alpha and wealth creation for its investors, with a typical holding period of 3-5 years.

Abakkus Emerging Opportunities Fund: a bottom-up approach

Abakkus Emerging Opportunities Fund is a Mid & Small Cap-focused PMS designed to generate alpha and risk-adjusted returns for clients by investing in a benchmark-agnostic portfolio across Mid & Small Cap companies. The fund was founded by Mr. Sunil Singhania in 2018 and is named after the ancient computing device, the abacus.

The fund follows a 15:15:15 discipline, investing predominantly in companies that qualify for at least two out of three criteria:

15% earnings growth, being the 2nd or 3rd player within a sector, and fundamental ideas picked via a bottom-up approach. The bottom-up approach involves selecting portfolio companies with a focus on profit and loss statements, balance sheets, cash flow statements, and valuations.

From a risk management perspective, Abakkus restricts single-stock exposure to less than 10% and sector exposure to no more than 30% at the time of investment. The fund typically pursues a 3-5 year holding period and adheres to the "MEETS" framework, which stands for Management, Earnings, Events/Trends, and Timings.

Abakkus Emerging Opportunities Fund has a strong team of qualified and committed individuals, including Master's degree holders, CFA charter holders, Chartered Accountants, and CFA candidates. As of August 31, 2024, Abakkus Asset Management had a PMS AUM of Rs. 12,121.95 Cr.

The minimum investment in the Abakkus Emerging Opportunities Fund is ₹50 Lac, with an exit load of 1.50% if redeemed within the first year and 0% thereafter. The fund's inception date was August 26, 2020, and it is managed by Abakkus Asset Management LLP, with Mr. Sunil Singhania as the Fund Manager.

Abakkus Emerging Opportunities Fund: a 15:15:15 discipline

Abakkus Emerging Opportunities Fund – 1 is a benchmark agnostic diversified portfolio of 30-40 companies with a bias towards mid and small caps. The fund has a 15:15:15 discipline, investing predominantly in companies that meet at least 2 out of the following 3 criteria:

15% earnings growth: Abakkus PMS and AIF products invest in companies with a consistent growth in profits and the potential to double profits in 4 years or less.

Preference for 2nd or 3rd player within a sector: Abakkus PMS and AIF products seek to invest in companies that are available at a significant discount to the leader in their sector.

Fundamentals-based ideas: Abakkus PMS and AIF products pick companies via a bottom-up approach, focusing on profit and loss statements, balance sheets, cash flow statements, and valuations.

The 15:15:15 discipline is part of Abakkus's overall investment philosophy, which follows the 'approach of growth in value investing'. This means identifying companies that are undervalued in terms of stock price versus business earnings and have strong growth potential in sales, market share, and earnings.

Abakkus Emerging Opportunities Fund – 1 also follows the “MEETS” Framework, which stands for Management, Earnings, Events/Trend, and Timings. This framework guides the due diligence process and includes analysing the quality and track record of management, capital expenditure, financial health, and potential for growth, among other factors.

The fund was founded by Mr. Sunil Singhania, who has over 25 years of experience in fund management. Abakkus Emerging Opportunities Fund – 1 has a minimum investment requirement of ₹50 Lac and an exit load of 1.50% if redeemed within the first year.

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