Newsletter December, 2024

In our June’24 and September’24 newsletters, we highlighted how the market anomaly over the past few years after the COVID lows (FY21-1HFY25) was at stark divergence to our investment style and how it has started exhibiting signs of reversal. We believe this trend reversal is now playing out in earnest and set to accelerate. This should benefit Ambit Asset Management’s distinctive bottom-up investment style which is marked by focus on pricing power plays, low beta, capital protection, commitment to quality and concentrated portfolios. In this newsletter, we discuss the following: 1) why ‘Zomato’, one of our core holding, is a rare pricing power play, 2) how portfolios based on pricing power stocks outperform globally and 3) reversal of post COVID style divergence of (FY21-1H25).