ASK LIGHTHOUSE PORTFOLIO

ASK Lighthouse Portfolio is a satellite portfolio that invests predominantly in a few focused themes or sectors at a time where structural transformation is underway and the extent of impact is high and durable. The strategy focuses on identifying deep and large opportunities during the high growth phase of a theme rather than long duration earnings compounding. Theme selection is based on structural changes with sizeable opportunity, relative youthfulness of the theme and adequate margin of safety. The portfolio typically maintains exposure to three to four themes at a time with flexibility to change themes as opportunities evolve. Investment approach combines top down theme identification with bottom up business selection to identify companies benefiting from transformational trends. The portfolio may hold around fifteen to thirty businesses with a single stock exposure generally limited to about ten percent while sector exposure can be high depending on the theme. Current themes include infrastructure and engineering, manufacturing, defence, energy, railways, capital goods and allied sectors benefiting from government capital expenditure, manufacturing expansion and import substitution trends. Past illustrations include companies such as Bharat Heavy Electricals Limited, Syrma SGS Technology Limited and Bharat Dynamics Limited which benefit from infrastructure, electronics manufacturing and defence growth opportunities. Particular sectors infrastructure, engineering, manufacturing, defence, capital goods and allied sectors. Market cap agnostic.