Name: Sustainable Compounders Fundamental
Brand: smallcase
SKU: CEDMO_0001
Price: 151802 INR

Compound Everyday Capital Management LLP is a SEBI registered Portfolio Manager and Investment Adviser.  It is a value oriented investment firm offering reasonable risk adjusted returns since 2012.

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Nifty 500 Index

Sustainable Compounders

Sustainable Compounders Fundamental

Surbhi

A portfolio of reasonably priced good quality equity shares and liquid ETF for sustainable returns

All publicly traded companies and ETFs on the NSE are included in the universe.

The smallcase leverages the in-house and research capabilities of our team comprising Chartered Accountants and combined experience of over 30 years. The objective is to buy quality companies at cheap or reasonable valuations. Our research process involves private equity like intensity and encompasses forensic study of publicly available information including financials, triangulation through on growth scuttlebutt, reverse discounted cash flow analysis, and continuous monitoring through management meets and conference calls. Our research process has built in checklists and controls to flag off behavioural biases and heuristics including building the reverse case and playing the devil’s advocate. In absence of compelling risk-return payoff we are okay with waiting for opportunities by parking a portion of smallcase in safer and liquid options.

We look to buy quality cheap. Our 5-stage screening process filters business on following parameters: <ul><li>Understanding the &nbsp;business – the unit economics, nature of demand of products and services, competitive landscape</li><li>Long runway – we like businesses that have large addressable market and opportunity size. This gives them tailwinds for growth. We try to avoid businesses where there is regulatory or disruption risks.</li><li>Competitive Advantage – growth without competitive advantage doesnot translate to value creation for shareholders. We look for strengths in the business model that ensures limited competition and high returns on invested capital</li><li>Aligned Management – We look at past actions of management to judge efficiency and fairness of management. We pay attention to protection or improvement of market share, disciplined capital allocation, conservative accounting and fair treatment of minority shareholders</li><li>Margin of Safety – Finally, we look for buying price that offers a margin of safety against ignorance, accidents or uncertainty. We are willing to wait if valuations are not comfortable, for quality bought at any price may not generate shareholder returns</li></ul>

Following parameters are considered while assigning weights to stocks in the smallcase:<ul><li>Business understanding and conviction on intrinsic values</li><li>Margin of safety</li><li>Smart diversification that reduces portfolio to single adverse exposure and lowers mutual correlation</li></ul>

This smallcase will be rebalanced on an as-needed basis

Sustainable Compounders Fundamental

Sustainable Compounders Fundamental

Overview

Stocks & ETFs