ICICI Prudential PMS Contra Strategy

ICICI Prudential PMS Contra Strategy seeks to generate capital appreciation by investing predominantly in equity and equity related instruments through contrarian investing. The strategy focuses on identifying opportunities that others may overlook by investing in sectors or companies where prevailing market sentiments are not positive at the time of purchase but where long term fundamentals remain strong. The investment approach aims to identify competent players or survivors in sectors experiencing temporary challenges, industry consolidation or cyclical downturns. Opportunities are also identified through special situations such as mergers, acquisitions, changes in holding subsidiary structure and product or department spin offs. Stock selection follows a fundamental bottom up research approach using parameters such as return on equity, return on capital employed, valuation metrics, corporate governance standards and capital allocation track record. The portfolio construction process begins with a broad listed universe which is filtered through research coverage and investment framework to build a concentrated portfolio of approximately 25 to 35 stocks representing high conviction ideas. The strategy may include companies with high entry barriers, improving earnings potential and strong competitive positioning even during periods of market pessimism. Investments are made across sectors and across market capitalisation with exposure to large cap, mid cap and small cap companies. Sector agnostic and market cap agnostic.