AIF - Sohum India Opportunities Fund
- A long only fund, with at least 70% in Large cap stocks, 10%-35% in Mid/Small cap stocks, Unlisted stocks (purely based on opportunities, have limit till 10% but do not plan to exceed 5% unless truly compelling opportunity).
- Sector deviations would be taken to get alpha while keeping an eye on Sector Benchmark weights, deviation in Stock weights will be taken to get alpha.
- Focus on return ratios (ROCE/ROE).
- Yes for GARP Investing (Growth at reasonable price) No for GAAP (Growth at any price).
- Maximum 10% in one stock, Nifty TRI – BM, Construction period – 3 months.
- The right sectoral balance, blend of large – mid/small cap (within sectors).
- Cyclicality of portfolio, element of defensives, liquidity of portfolio, sensitivity to Indian economy to be taken care of.
- Global linkages in portfolio.
- Keep an eye on overall leverage of the portfolio companies.
- Liquidity of the portfolio shall be adequately maintained.
- No leverage to be used in the fund.
- No derivatives position to be used.
- No short position to be taken.