About
Ambit is one of India’s premier providers of financial advice and capital. They are focused on delivering tailor-made financial solutions that are suitable to their clients’ needs. These are based on their deep understanding of the Indian economy and market forces, unmatched research and their client-focused approach.
At the core of their solutions lies the ‘abacus’, which has governed the development of mankind for centuries. Based on this ethos, they provide insightful solutions that create intrinsic value for all their stakeholders.
Their business acumen gives us the ability to see the big picture and understand the levers that affect the business drivers through smart decisions and actions that can increase the long-term profitability for their clients and themselves resulting in sustainable growth.
They believe that at Ambit, we possess the ability to break down complexity while suggesting the finest financial solutions to their clients.
Key staff
- Sushant Bhansali – Sushant has over 18 years of experience, 11 of which he has spent with Ambit working in different senior capacities. Before Asset Management, he led Ambit’s Principal Investment business, where he cut his teeth investing in listed equities from Ambit’s Balance Sheet. During those six years, the team delivered superlative returns, investing primarily in small and mid-cap listed Indian companies, surpassing benchmark returns by a mile. The team followed a highly concentrated portfolio strategy, investing in high conviction ideas on an opportunistic basis. He began his stint at Ambit with the Group CEO’s office, where he spent close to five years working on various transactions while advising clients on M&A and capital raising.
- Aishwarya Dadheech – Aishvarya is the Fund Manager of Ambit Good & Clean Midcap Portfolio and Ambit Emerging Giants Portfolio at Ambit Asset Management. He has over 13 years of experience in Investment and Equity Research. Before moving to the Asset Management business, he worked as Vice President in the Principal Investment arm of the firm managing Ambit””s shareholder funds. Prior to joining Ambit’s Principal Investment business in 2017, Aishvarya worked as an Equity Fund Manager at Reliance Life Insurance for 7 years. He was part of the investment team managing an AUM of $2.5 billion. He has also worked with CRISIL Limited (A Standard & Poor’s Company) as Equity and Credit Analyst for 3 years. He is a CFA® charterholder and Chartered Accountant. He holds a bachelor degree in Accounting from St. Xavier”s College, Kolkata and has an MBA in Finance.
- Manish Jain – Manish Jain is the Fund Manager of Coffee Can PMS at Ambit Asset Management. He has over 16 years of experience in equity research. Before moving to Ambit Asset Management, he worked with Nomura for a decade as a Lead Analyst covering FMCG, electrical durable and retail. Prior to Nomura, Manish worked with Lehman Brothers, Enam Securities, ICICI Securities, and Motilal Oswal in the equity research space covering the consumer sector, paint, sugar, pipes, auto and auto ancillaries etc. He had consistently been voted as the best performing analyst in the research team for many years by ADIA, Capital World; Capital International for strong corporate access amongst others. Manish has cleared Level 2 of Chartered Financial Analyst (USA) and holds an MBA in Finance from Symbiosis Centre for Management and Human Resource Development, Pune.
Investment philosophy
- Proprietary research backed framework
- Disciplined and process driven approach
- Investment in high quality businesses
- Long term investment with low churn
Funds
- Coffee Can Portfolio – Large cap portfolio
- Good & Clean Portfolio -Mid cap portfolio
- Emerging Giant Portfolio – Small cap portfolio
Investment Process
- Stringent quantitative filters
- Each offering is based on deeply researched and back tested framework to generate the investment universe
- High threshold for performance over long spans of time, greatly minimize chances of poor performers or poor quality companies entering into the investment universe
- High quality of accounts and corporate governance is uncompromised
- Experienced team and deep-dive research
- Dedicated and experienced research team
- Research processes inspired by IE Research
- Investment Committee to approve all investment decisions
- Part of larger Ambit group lends advantages
- Focus on what is knowable and what is important
- Focus on earnings growth + earning quality
- Lower obsession with timing when one is investing in a superior calibre of companies
- Companies with a consistent track record and leadership traits are preferred
- Past track record + Future sector potential + Current management capabilities = Comfort on delivering quality earnings
- Risk management
- Concentrated Portfolios deliver best returns as returns do not get average out
- Lower drawdowns due to consistent performers in secular sectors
- Long term orientation with low churn realize the power of compounding
Coffee Can Portfolio
Number of Stocks – 10-15
33% per sector, 15% per stock
Large cap biased with Nifty50 as the benchmark
Framework
Sector Allocation
| Sector Allocation | Percentage |
| Financials | 25 |
| Building Materials | 22 |
| Consumer Staples | 21 |
| Consumer Disc | 10 |
| IT | 9 |
| Retail | 7 |
| Retail Diagnostics | 5 |
| Cash/Equivalent | 1 |
Segment Allocation
| Segment Allocation | Percentage |
| Large cap | 78 |
| Mid cap | 21 |
| Small cap | 0 |
| Cash/Equivalent | 1 |
Performance
Inception Date March 6, 2017. Returns as on 31st January 2021
Good & Clean Portfolio
Number Stocks – 15-20
25% per sector(except BFSI), 10% per sector
All cap with Nifty 100 as the benchmark
Framework
Sector Allocation
| Sector Allocation | Percentage |
| Financials | 35 |
| Consumer Disc | 19 |
| Pharmaceuticals | 11 |
| Specialty Chemicals | 10 |
| Homebuilding | 10 |
| Automobile | 6 |
| Industrials | 5 |
| Cash/Equivalent | 4 |
Segment Allocation
| Segment Allocation | Percentage |
| Mid cap | 73 |
| Large cap | 23 |
| Small cap | 0 |
| Cash/Equivalent | 4 |
Performance
Inception Date March 12, 2015. Returns as on 31st January 2021
Emerging Giants Portfolio
Number of Stocks – <20
25% per sector, 10% per stock(cost basis)
All cap with BSE Smallcap as the benchmark
Framework
Sector Allocation
| Sector Allocation | Percentage |
| Consumer Disc | 31 |
| Financials | 23 |
| Chemicals | 11 |
| Homebuilding | 11 |
| Industrials | 8 |
| Consumer Staples | 7 |
| Auto and Auto Ancillaries | 5 |
| Cash/Equivalent | 4 |
Segment Allocation
| Segment Allocation | Percentage |
| Small cap | 91 |
| Mid cap | 5 |
| Large cap | 0 |
| Cash/Equivalent | 4 |
Performance
Inception Date Dec 1 2017, Returns as on 31st January 2021
Analyst questions
- Has the company exited any stocks before the time horizon? If yes, then why?
- Why Good and Clean portfolio consists of BFSI sector more than 25%?
Peer review
- There is a lot of information on the portfolios of ambit in the website or the brochure given and it is very detailed.
- The firm is referred to as the first person in many places whereas it should be referred to as a third person.
- AUM IS 1700 Crore for this AMC
- Individual holdings of strategies is not mentioned , allocations between large ,small and mid cap not mentioned.
- Each fund has its own features and different perspectives.
- Is there a difference between Emerging Giants and Good and Clean portfolios?
- How do they sustain the clients ?
Prepared by – Karah Shah
3 May 2021
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