Series 60 – Q1 Quarterly Call Highlights

Last week we had extracted a small snippet from our quarterly call explaining what concentration mean to us and why we are deliberately not focusing on concentration in the portfolio in this market scenario. Today we are presenting to you the recording of our Quarterly call Q1-2024. Below are the key highlights of the call.

1. When asked are these levels okay to invest in India? India is in a quadrant where prices keep increasing and economic activities are increasing, we are looking at inflationary environment where earnings are strong and the valuations are already reflecting the same and hence
2. In a Global bull markets environment, it becomes even more important to look at the earnings and the micro level we have listed on how each sector look like and how the portfolio is aligned towards the sectors of growth in our portfolio.
3. Two important aspects of portfolio companies that are non-negotiable to us are- Earnings growth and Margin protection if not expansion. As far as we don’t overpay to own the businesses with these features, we believe our portfolios are getting constructed right. Our portfolio has consistent earnings growth of 18-20% with expanding margins.
4. Power, Capital Goods, Manufacturing, Pharma and Auto are the sectors that we are overweight on and we are underweight banking, IT and consumers.
5. Considering 2024 a year with increased volatility, we need to focus on liquidity in the portfolio are aligned towards a large to midcap-ish portfolio
6. We would look at concentration in the portfolio when we have valuation under our control in terms of downside protection. Hence currently we are looking at 32-34 companies with starter positions.
7. We have also explained why we have considered investors adding capital into the portfolio

Below is the link to listen to the complete call-

https://www.youtube.com/watch?v=shnGi_q9GPU