About
Acepro Advisers Pvt Ltd is a licensed portfolio manager by SEBI vide license no: INP000004854. It has also received approval to launch AIF.
It is a subsidiary of Sarthi Capital Advisors Pvt Ltd, a part of Sarthi Group which offers a variety of services in financial domain: Investment Banking, Merchant Banking, Corporate Advisory, Wealth Management and Angel Investment Network. Their endeavour is to create long term wealth creation for their clients by picking up right opportunities at the right time. Their team has an experience of more than 2 decades while the company was established on 15th June 2010. Total AUM under management is roughly Rs. 41cr
Key staff
Kunj Bansal is Partner & Chief Investment Officer at Sarthi Acepro. He is a seasoned investment professional with around 25 years of experience of managing money under different formats such as offshore funds, mutual funds and PMS. Some of his earlier assignments have been with Kotak, Reliance and Centrum. He is an Engineer and a Management Graduate from NMIMS. His valued opinion is also sought by news channels like CNBC and ET Now.
Investment philosophy
The company believes in safety of the investors and doesn’t like to take unnecessary risks thus selecting companies which have proven track record and performed well in terms of both price and earnings growth potential. The Company believes that full growth potential can only be achieved in a longer time period and thus avoids short term investing.
To summarise
Time period: Wealth accumulation over Long term period
Approach: Top Down approach.
Style: Growth Style with high growth potential.
Investment Process
The company starts with the top bottom approach but then digs deep into the fundamentals of the company as it believes in investing in the companies with strong fundamentals.
Funds managed
1) Acepro Galaxy Strategy – Multi Cap
Date of inception: 1st April, 2019.
Investment Objective: The Portfolio objective is to generate Capital
Appreciation over a period of time covering different business cycles by investing in listed equities.
Quality is the prime focus as the company follows a QARP approach. That is “Quality at Reasonable Price”.
Quality is assessed on the basis of Growth, Margins, Cash flows and Return Ratios.
Strategy Composition: Portfolio shall typically comprise of around 20 stocks covering different Market Caps.
Client Suitability: Investors with an investment horizon of 4-5 years seeking steady moderate market returns with moderate to high risk appetite.
Performance Benchmark: Nifty 50 and Nifty Midcap 100.
Asset Under Management: Undisclosed.
Fund Management Expense: 2.5% fixed while the variable fee works with an AMC of 1.50% with a 20% profit sharing above 12% hurdle.
Exit Load: 1st Year: 3%
2nd Year: 2%
3rd Year: 1%
Below is the performance and comparison with the benchmark as on 31st March, 2021 of this fund:
| In % | 1 month | 3 month | 6 month | 1 year | 2 year |
| Portfolio | -0.3% | 0.8% | 8.3% | 23.8% | – |
| Nifty 50 | 1.1% | 5.1% | 30.6% | 70.9% | – |
| Nifty Midcap 100 | 1.8% | 13.7% | 39.5% | 102.4% | – |
Please note the portfolio data was gathered from pmsaifworld.com.
The return here refers to the holding period return.
Top 5 holdings:
| Cash & Equivalents | 11.11% |
| Finolex Industries Ltd | 6.24% |
| Max Financial Services Ltd | 5.61% |
| Lux Industries Ltd | 5.47% |
| PI Industries Limited | 5.46% |
Top 5 Sectors:
| Chemicals | 16.50% |
| Financial | 14.32% |
| FMCG | 12.39% |
| Energy | 8.13% |
| Healthcare | 7.47% |
Market Cap Allocation:
| Large Cap | 34.16% |
| Mid Cap | 15.99% |
| Small Cap | 38.74% |
| Cash / Equivalent | 11.11% |
Please note the above data was gathered from pmsbazar.com
2) Acepro LargeCap Strategy
Date of inception: 15th Feb, 2019.
Investment Objective: The Portfolio objective is to invest in a concentrated portfolio of pure large cap NIFTY 50 based companies with growth visibility, strong moat, good corporate governance and right valuations to achieve long term capital appreciation.
Strategy Composition: Portfolio shall typically comprise of up to 50 stocks covering different sectors but mostly large cap funds.
Client Suitability: Investors with an investment horizon of 3-4 years seeking steady moderate market returns with low to moderate risk appetite.
Performance Benchmark: Nifty 50
Asset Under Management: Undisclosed.
Fund Management Expense: 1% fixed while the variable fee works with an AMC of 1.50% with a 20% profit sharing above 12% hurdle.
Exit Load: 0%
Below is the performance and comparison with the benchmark as on 31st March, 2021 of this fund:
| In % | 1 month | 3 month | 6 month | 1 year | 2 year |
| Portfolio | 0.9% | 4.22% | 27.22% | 65.57% | 15.22% |
| Nifty 50 | 1.1% | 5.1% | 30.6% | 70.9% | 12.4% |
Please note the return above 1 year is computed as CAGR. Returns below 1 year are holding period return.
Portfolio data was gathered from pmsaifworld.com
Top 5 holdings:
| Sun Pharma | 11.44% |
| HDFC Bank Ltd | 11.31% |
| Infosys Ltd | 10.52% |
| Cash and Cash equivalent | 10.01% |
| ICICI Bank Ltd | 9.98% |
Top 5 Sectors:
| Financial | 32.57% |
| Technology | 21.74% |
| Energy | 11.44% |
| Communication | 6.65% |
| Healthcare | 5.72% |
Market Cap Allocation:
| Large Cap | 89.99% |
| Mid Cap | – |
| Small Cap | – |
| Cash / Equivalent | 10.01% |
Please note the above data was gathered from pmsbazar.com
Media
- Title: Infobeans Tech IPO subscribed 31 times, raises Rs 1100 cr.
Sarthi Capital Advisors was the merchant banker to this issue.
- Tittle: Kunj Bansal: Pioneer fund manager debunks some investing myths
In this interview with Shishir Asthana of Money Control Kunj Bansal talks about how managing PMS is different from what he is used to doing that is managing mutual funds.
He talks about stock picking and his thoughts which are in line with Acepro that is growth style and not value based. As he believes with so much competition in market value investing opportunities are very few which answers the question as to why Acepro believes in Growth Style investing.
He then talks about how important a Top down approach is as he gives the example of the Automobile Industry as a whole and how introduction of battery cars will affect the auto ancillaries.
A very interesting thing he talks about is “how being in the business of investing is different from investing .“ and how it prevents fund managers from getting carried away by the bullish trend but instead take some money off the table, book a bit of profit , rebalancing their portfolio in the process.
Analyst questions
- You follow a top down approach so obviously you have an idea as to which sector may perform better in future. My question is why allocating such high weights to technology in a Large Cap portfolio but on the other hand no technology weights (looking at top 5 sectors) in such high proportions in Multi Cap Strategy?
- Is the reason for low return compared to respective benchmarks because of such high Cash Holding? Or is it because Acepro portfolios in a whole are less risky compared to the market indices? If so, can you give any quantitative data from which the same could be verified?
- Client Suitability states that Acepro Galaxy portfolio is for moderate to high risk takers compared to which Ace pro Large Cap portfolio is for low to moderate risk takers. So, why should an investor pick Acepro Galaxy portfolio over Acepro Largecap which (Acepro Galaxy) has vastly unperformed in the past considering investors are also taking greater risk?
Prepared by Sanjay Agarwal
Reference: https://www.pmsaifworld.com/portfolio/acepro-advisors-pvt-ltd/
https://pmsbazaar.com/AMC/Acepro-Advisors-Private-limited
https://top10stockbroker.com/portfolio-management-services/acepro-investment-pms/
Please note: The company website was not accessible. Only a small brochure was obtained from Sarthi Group, so all the information was gathered from 3rd party websites.
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