Emerging Giants Newsletter – March, 2018

Ambit’s Emerging Giants portfolio aims to invest in small-cap companies with market dominating franchises and a track
record of clean accounting, governance and capital allocation. The fund typically invests in companies with market caps
less than 2500cr. These companies have excellent financial track record, superior underlying fundamentals (high RoCE,
low debt) and ability to deliver healthy earnings growth over long periods of time. However, given their smaller sizes
these companies are not well discovered, owing to lower institutional holdings and lower analyst coverage. Rigorous
framework based screening coupled with extensive bottom-up due diligence lead us to a concentrated portfolio of 15-16
emerging giants.