Consistent Compounders

Consistent Compounders invests in a concentrated portfolio of heavily moated companies capable of delivering healthy earnings growth and consistent free cash flow compounding over long periods of time. The strategy follows a long only equity approach focused on quality over quantity and relies on in depth bottom up research and proprietary research frameworks to identify clean and high quality businesses with strong competitive advantages, sound capital allocation and capable management. The investment process begins with the BSE 500 universe and applies a forensic accounting screen to eliminate companies with accounting or governance issues followed by fundamental filters focused on revenue growth, return on capital employed and cash generative franchises that are scaling rapidly. Remaining companies undergo bottom up research through analysis of annual reports, stakeholder discussions and independent third party checks to verify management claims and governance standards. Portfolio construction results in a concentrated portfolio of approximately eighteen to twenty stocks with low churn and long holding periods. The strategy focuses on companies with strong pricing power, sustainable competitive moats, high return ratios and longevity of cash flows supported by robust reinvestment and earnings growth potential. Sector agnostic and combination of large cap, mid cap and small cap.