Series 81 – How are we Different and Why the returns are Repeatable

When discussing portfolio strategies with partners, a common question asked is- How to position ITUS within a client’s portfolio and whether it’s the right time to invest. ITUS offers significant diversification, away from portfolios that are typically overweight in banking or closely mimic market indices. Our portfolio construction approach is steadfast, focusing on businesses with.

1. Strong earnings growth
2. Robust Return on Capital Employed (ROCE) with margin expansion.

We regularly review our portfolios to ensure they maintain robust earnings growth and consistent ROCE- which indicates efficient capital allocation. This rigorous review process helps us uphold the quality and performance of the portfolio. The accompanying chart below highlights the portfolio’s ROCE over different periods: five years, three years, and the trailing twelve months. A consistent ROCE depicts our companies’ efficient performance, and this can generate higher EPS growth in the long run. Each investment decision whether entering, upsizing, downsizing or exiting a position revolves around maintaining consistency in ROCE.

ITUS’s strategy is designed to outperform, due to its focus on high-quality businesses with strong earnings growth and robust ROCE. This makes us a resilient choice even in volatile markets. Our emphasis on long-term value creation ensures that it remains well-positioned to generate sustainable returns over time. By maintaining discipline in these fundamentals, ITUS is well-positioned to deliver repeatable and consistent returns for its investors.

We have represented our ROCE in our earlier episodes also, to access the content please click on this link- Series 61 – Itus Portfolio Health and its Measure – ITUS Capital

We also keep writing to you about our SIP program that presents investors with a convenient avenue to regularly infuse capital into the client’s portfolios. Feel free to check out the benefits for your clients. If you need more info, reach out to your dedicated relationship manager at [email protected].

These weekly episodes are now available in our website for your quick read and you may access the same in the below link.

Weekly Enlightenment Archives – ITUS Capital