Motilal Oswal Large & Midcap Fund completes 5 years with a unique track record of being placed at No.1 position across 1 yr, 3 yr and 5 yr timeframes.
Ajay’s secret sauce for success: cut out all the noise and focus on finding and diligently tracking 30-40 stocks with healthy growth momentum. Focus on PEG rather than PE for investing decisions.
His mantra can well be a success mantra for all businesses and all of us: cut out unnecessary noise, find your space, pick the right metric for success and diligently follow your process.
His portfolio is starkly different from most peers: 30 stocks with 10 of them sporting trailing PEs in excess of 100, only 1 large bank, zero presence of big IT, big pharma, big auto and big FMCG, 50% exposure to mid and small caps despite peers gravitating towards large caps, no benchmark considerations in portfolio construction.
Despite large number of high PE stocks in the portfolio, Ajay says his portfolio’s PEG at 1.6 is quite similar to that of Nifty 50.
His portfolio has corrected far less than market (6% vs12%) in recent weeks – an acid test of the quality of stocks he holds in the portfolio.
He acknowledges that there are macro concerns – both global and domestic – and he maintains ongoing engagement with businesses to understand implications and impact. But at the end of the day, it all boils down to one factor: can he find enough stocks with strong earnings visibility to populate his portfolio.