If you ponder over the investments of all the top-notch investing firms like ChrysCapital, Nalanda Capital, Westbridge Capital, Creador, Multiples Equity, Malabar Capital, Cartica etc, you will find that they have a common investment philosophy which is to invest in top-quality, high ROE companies with a reputed management.
You will never find a ‘junk’ or a ‘low quality’ stock in their portfolio.
You will also find that these ace investors are not chary of paying top-dollar for their investments. They know that quality comes at a price and they are happy to pay it.
Cartica Capital, which is run by whiz-kids Teresa C. Barger, Farida Khambata and Mike Lubrano, is no exception to this rule. Their present portfolio has the following top-quality stocks:
| Latest Portfolio Of Cartica Capital | |||
| Company | %Holding | No of Shares (in Lakhs) | Rs Crore |
| Mahindra & Mahindra Financial Services | 7.85 | 446.41 | 1,056 |
| Page Industries | 7.58 | 8.46 | 1,191 |
| TTK Prestige | 2.81 | 3.27 | 119 |
| Eicher Motors | 2.80 | 7.59 | 1,370 |
| Supreme Industries | 1.91 | 24.27 | 163 |
Cartica first came into our radar in February 2014 when they bought 5.58 lakh shares of Page Industries Ltd from the Genomals for over Rs 316.55 crore at an average price of Rs 5,673 each.
You will be astonished to know that that though Page Industries has always been an “expensive” and high P/E stock, Cartica has made a mind-blowing gain of 150% in just about 18 months.
Today, Cartica added yet another top quality stock, PI Industries, to its portfolio. It bought 5,294,249 shares at Rs. 605 each, making an investment of Rs. 320 crore.
I have already conducted a thorough analysis of the prospects of PI Industries in my piece “Keep An Eye On PI Industries. There Is A Chance For Bumper Gains”. In my piece, I have explained the business model of the company and the core financials. I have also collated all the expert advice on the stock. The unanimous opinion of the experts is that PI Industries is on a strong growth trajectory and that its predictable earnings growth, high return ratios & low-debt status makes it a “safe” and “dependable” stock and a must-have for every portfolio.
Now, we have to see whether PI Industries is able to match the performance of its peers like Page Industries, Eicher Industries etc in the portfolio and also give bumper gains.
Excellent article Arjun, highly appreciated.