ICICI Prudential PMS Value Strategy

ICICI Prudential PMS Value Strategy follows a value investing philosophy aimed at identifying undervalued companies that have strong business fundamentals and are quoting at a discount to their intrinsic value with potential for rerating over time. The strategy defines value investing as investing in good business at reasonable or attractive price rather than mediocre business at a bargain price and focuses on companies where market price is below fair value but where fundamentals remain strong. Stock selection involves determining economic value of the firm, comparing intrinsic value with current market price, analysing reasons for stock price trading below intrinsic value and identifying business moat in comparison to peers while not following the herd during periods of market pessimism. The investment process evaluates businesses with visible competitive advantage, capable management and sectors that are easy to understand, combined with due diligence and risk reward assessment to identify companies capable of generating compounded performance over the long term. Portfolio construction is built through an in house screening process, research coverage and filtration framework which narrows a broad listed universe to a portfolio of approximately 35 to 40 stocks. Investments are made across industries including financial services, metals and mining, automobile and auto components and construction among others. Sector agnostic and market cap agnostic.