FidelFolio Young Everest Equity Quant

Young Everest is a small-to-mid-cap portfolio focused on emerging companies with solid capital efficiency (ROCE ~25%, ROE 20–25%) and improving capital efficiency. It is built with the upgraded MAGIC 2.0 engine, which applies ~20 carefully selected investment rules derived from backtesting. The strategy has delivered a CAGR of ~32%, outperforming the Nifty 50 while maintaining superior risk-adjusted returns (Sortino Ratio of 9 vs. 3.7).

Selected Rule Highlights

Young Everest is built using 20 selected rules. Rules focus on long-term compounding — ROCE and ROE CAGR > 15%. Business growth is strong and consistent — PAT and PBT CAGR > 10–20% in most years.

Back-tested Performance Snapshot (1Yr Return)

Mean:

• Young Everest: ~32%
• Nifty50: ~15%

Median:

• Young Everest: 30%
• Nifty50: 12%

Downside Risk (MAR<0%):

• Young Everest: 2%
• Nifty50: 2%

Sortino Ratio (downside risk-adjusted return):

• Young Everest: 2.1
• Nifty50: 0.8

Returns >15% (Consistency):

• Young Everest: ~73% of periods
• Nifty50: ~37% of periods

Business Quality Highlights

Capital Efficiency:

• Average ROCE and ROE: ~25 / 20%

Growth Metrics:

• 1/2Yr PAT Growth: 18/11%
• 1/2Yr Revenue Growth: 13/13%

Valuation and RE Rating:

• Trailing PE: 10-15
• Profit Growth vs PE Re-rating contribution to returns = 60 : 40

Size & Sector:

• Sectors: Diversified, Old Economy
• Average market cap: ~₹24,000 cr