ACMIIL follows a blend of the Scientific investment approach and value investing principles. The Scientific approach helps them manage the risk better, while the value-based philosophy helps them find better opportunities, thus making their Portfolio Management Services (PMS) a good platform for investment.
“Most market participants chase alpha but get risks, while one could chase safety and get alpha.”
Based on this insight, the Scientific Investing Philosophy is focused on a “Safety First” approach. The idea is that since one is operating in a risky asset class like equities, the focus should be on reducing those risks and chasing safety.
The focus of Scientific Investing can be framed as follows:
Enhance Safety, Enhance Growth, Enhance Returns
The next step is to “Enhance Growth, Enhance Returns.” The Capital Multiplier Universe is then analyzed further to identify companies that have the opportunity to grow at high rates due to exposure to growth vectors driven by long-lasting themes, typically driven by technology, social, political, legal, economic, or environmental trends.
Typically, the Scientific Investing framework suggests buying companies participating in themes (and growth vectors) in Mr. Market’s Blind-spot and selling those companies when the theme is in Mr. Market’s Mirage.
ACMIIL designs core portfolios which provide exposure to multiple themes and growth vectors which provides another dimension of diversification and enhances the growth exposure of the portfolio.
