Enam

A Disciplined And Proven
Investment Philosophy

Our Philosophy

Enam AMC’s Approach To Investing

With an objective to maximise gains and minimise setbacks, we adopt an effective investment strategy that has been designed over two decades of experience. Our investment philosophy and research process enable us to embrace volatility and outperform the benchmark.

Being one of India’s only asset management firms to follow a clearly stated Socially Responsible Investment (SRI) philosophy since inception, we don’t consider companies engaged in the business of tobacco, alcohol, gambling, etc.

The team conducts its own independent and bottom-up stock analysis which ensures that we remain grounded and disciplined in market volatility. Further, our risk framework articulates investment risk and ensures tedious decision-making.

Investment Philosophy

Effective 2012, Enam AMC started publishing audited performance track records of its funds with the goal of ensuring that all our products adhere to Global Investment Performance Standards (GIPS).

Our investments function on a 5-pillared approach that seeks to identify high-quality businesses that are structurally well-positioned, have sustainable competitive advantages, and present strong execution capability for consistent long-term growth.

This approach helps us seek value-driven opportunities that form the base of our investment process.

Investment Approach

The Five Pillars
Of Our Investment
Philosophy

1. Opportunity

When evaluating a particular company, we ascertain the size, attractiveness, and addressability of the opportunity it offers. The scalability and ability of the company to grow sustainably over time and its potential for risk mitigation are of utmost priority to us.

2. Longevity

With a process that focuses on long-term returns, we pay close attention to a company’s potential profitability over the same period of time. We analyse and understand their predictability, adaptability, and resilience. This understanding helps us select suitable investments that provide sustainable and competitive returns that will compound over the long term.

3. Management

Intellect and integrity are of utmost importance to us as fiduciaries. We seek to invest with companies that follow corporate governance standards, managements that prioritise ethics, and individuals who can adapt and innovate for the collective benefit of all parties involved.

4. Value Acretive

The opportunities should be EVA positive, generate free cash flows, and offer prudent return of incremental capital. Improper capital allocation can be destructive and incremental improvements can generate disproportionate returns.

5. Disciplined

Our imbibed culture of discipline forms the bedrock of our investment philosophy. We focus on staying disciplined and conservative in our approach while course-correcting and taking initiatives to go over and above to deliver alpha. Looking at all factors from a long-term point of view, we can differentiate between hype-based and value-based buying.