The tree represents the portfolio’s core holdings; strong, resilient, and deeply rooted. The surrounding vegetation reflects satellite positions that capture opportunities across sectors and themes. Set within a desert landscape, the scene also symbolises disciplined investing: in an environment where resources are scarce, strength and selectivity matter most.
The Core and Satellite Strategy builds a focused portfolio balancing high-conviction core holdings with tactical satellite positions, designed to capture alpha from the sector rotations that characterize Indian markets while benefiting from profit concentration among market leaders.
About 25 stocks that straddle best-in-class performance and sector/theme rotation
High conviction equals bigger allocation; single-stock cap is 15% at investment
Stock selection done with a 1-2 year earnings horizon, bottom-up within a sector/theme
Satellite weights are reduced to lock in gains when price discovery is largely done, creating space for new picks
Selection spans cyclical/non-cyclical sectors and public/private sector companies
01
We look for mispriced assets with potential to generate sustainable alpha—whether from out-of-favour market segments, trends not well understood by the market, or internal changes in a company.
02
We actively seek trends that have potential to make an impact 6-18 months out and longer & not just tactical mispricing.
03
Rigorous analysis of balance sheets, business structures, management capabilities, shareholder alignment, and forecast building with emphasis on potential trigger points. This produces a dynamic focus list of 40-60 stocks.
04
The CIO selects 15-30 stocks from which a portfolio is constructed with the objective of repeatable outperformance.
05
Large Caps: 41.5% | Mid Caps: 37.0% | Small Caps: 15.5% | Cash and Mutual Funds: 6%
Period | Portfolio | Nifty 50 TRI |
|---|---|---|
| 1M | -0.6 | -1.1 |
| 3M | -1.9 | 2.9 |
| 6M | -7.1 | -3.6 |
1 Year | 0.9 | -0.4 |
| 2 Year | -5.2 | -1.2 |
3 Year (Annualized) | 8.7% | 9.5% |
5 Year (Annualized) | 12.5% | 8.3% |
| Since Inception* - TWRR | 16.7% | 11.9% |
| Since inception* - Absolute | 203.2 | 124.6 |
*Inception: June 20, 2019 | Data as of August 31, 2026 | AuM: ₹265.1 Crores
Our returns have not been dependent on one or two stock picks. Alpha sources are fairly diversified—19 unique stocks have contributed to the top 50% of yearly returns since inception. This signifies a robust process with a higher probability of being repeatable.
The strategy has navigated sector churns effectively, with IT services weight exceeding 30% before the post-Covid re-rating gathered pace (reduced to zero by early 2022 before the sector de-rated), and bank weights at nearly 33% before the significant outperformance commenced in 2022.
This strategy is suitable for investors with an appetite for equity market risk and an investment horizon of 2-3 years who seek active portfolio management with a blend of stability and tactical positioning.
P. Krishnan
Managing Director & Chief Investment Officer
With more than three decades of experience in asset management and equities, Krishnan is one of the longest-serving fund managers in Indian equities.
Career Highlights
Portfolio construction involves right-sizing constituents at the outset with constant and intense monitoring, leading to corrective actions as required.
