Kalpen Parekh, CEO, IDFC AMC said,” With the Equity Opportunity Series, IDFC AMC attempts to create products that can help investors leverage the benefits of the economic cycle. Series 1 was launched in April and raised 260 cr. We were able to raise and deploy money at attractive prices and build a good portfolio. Now, we are coming with Series 2.”
Punam Sharma, Director, IDFC AMC said, “The economy is in a consolidation phase and presents some good investment opportunities. We are keen to raise money counter cyclically with the focus on future performance. This is important to ensure that investors have a good investing experience. With Series 2, we intend to create a portfolio of good companies with currently low capacity utilization and hence beneficiaries of operating leverage over the next few quarters.”
Macro Indicators: In a consolidating economy, greater focus on capital efficiency can be achieved by utilising the current idle capacity. This would lead to better productivity and profitability. Better capacity utilisation leads to higher revenues and profit growth is more than revenue growth due to operating leverage across industries. The investment strategy of this fund is designed to benefit from this opportunity.
- Firms operating at low capacity utilization and are likely to see better utilisation
- Sensitivity of earnings to capacity utilization is very high, and therefore, as the demand picks up these firms will show higher profitability
- Firms who are consolidating their businesses and have a relevant, established product or service
- Strong history and stable promoter
Investment Universe: Predominantly stocks in BSE 500 index. The fund will not have a capitalization bias and will be diversified across sectors and market caps.
Product Structure: The Fund will be of 3 year tenor and close ended.
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