Prudent Equity Ace Fund, a Securities Exchange Board of India (SEBI) registered category III long only alternate investment fund (AIF), has delivered roughly 75% time-weighted rate of return (TWRR) in one year. The fund, which was launched last year in December, is up roughly 20% in the past quarter.
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In the month of December, the AIF is 8% up, the fund house said in a statement.
According to Siddharth Oberoi, Fund Manager of Prudent Equity Ace Fund, an investment of ₹1 lakh in the fund at the time of launch in December 2022 would have translated to ₹1,75,000 as on December 2023.
About the fund
The fund comes with a minimum ticket size of ₹1 crore. It is a flexi cap fund that invests in public listed Indian equites only.
"Currently, we see value in a lot of construction, engineering and infrastructure companies. Hence, we are overweight there with ~35% allocation, followed by the banking sector. Presently the AIF handles capital of around ₹300 crore," Oberoi told CNBC-TV18.com.
Fund's investment strategy
Talking about Prudent Equity Ace Fund's strategy, Oberoi said, "We are very focused on the economics of a business. We try to figure out how a particular company differentiates its products and/or services and what it is doing that will drive its growth going forward. Management quality is also something we focus on."
Oberoi emphasised that capital allocation ranks high in their criteria. They prefer companies with a significantly higher return on capital than the cost or those on track to achieve this soon.
"We run a sector agnostic fund. Instead of following a top-down approach we look at the economics of the business irrespective of the industry. Every industry has its own outlier present and if it is available at valuations that is appealing us, we like to invest in those pockets," he said.
