Bio
Sundaram Asset Management Co. Ltd. (Sundaram AM) is the wholly-owned asset management subsidiary of Sundaram Finance Ltd. ( BSE: 590071) in India.\nFormerly known as Sundaram BNP Paribas Asset Management, established as a joint venture in 1996, the firm changed their name to Sundaram Asset Management in 2010 when the joint venture was dissolved.\nSundaram AM is based in Chennai and manages the Sundaram Mutual Fund.
Mandate
Sundaram AM is an active, research-oriented manager which employs a fundamental approach, seeking long-term outperformance by investing in large and small/medium-sized companies with unique business strength in attractive sectors, sound and transparent management, visibility and durable growth at a reasonable price.\nThe firm performs fundamental quantitative analysis, including regular company visits, to assess markets, seeking to identify attractive and relatively unknown companies with strong financial characteristics evaluating profit margins, finance charges, cash flows, revenue and earnings growth, value add, return on equity and Du-Pont analysis, return on capital employed, working capital efficiency, trend analysis for key parameters and peer and industry aggregate comparison.\nTo generate ideas, they look at a variety of macroeconomic factors including GDP, inflation, interest rates, money supply, credit growth, forex accretion mapping sector patterns in GDP growth, and the economic cycle. The company-specific factors they evaluate include future growth drivers, management capability, capital intensity and balance sheet strength.\nSundaram constructs portfolios utilizing a core/satellite approach, where the core portfolio contains a significant percentage of large-caps and the satellite portfolio is based on small/mid-caps. They qualitatively evaluate business/sector prospects and the product lifecycle/business cycle. They look at a company's risk profile, including their leverage, ability to raise equity, cost of capital, track record in debt repayment, qualitative aspects, transparency, management quality and capability and fairness in treatment of minority shareholders.
Specialisations
Corp, Growth, Large/Mega Cap, Micro/Mini/Small Cap, Mid Cap, Money Market, Multi-Cap, Value
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