Newsletter June, 2024

In our last two Ambit Coffee Can Portfolio communications, we highlighted how the market anomaly over the past few years post COVID lows were exhibiting signs of reversing. This trend reversal is now set to accelerate. We expect investor focus to shift sharply towards capital protection and quality investing style. We also expect volatility to increase sharply hereon. Post election results the likelihood of policy rebalance is high, which could boost overall consumption sentiments and lead to rotation towards asset light, high ROE and high FCF generating sectors and stocks. This should benefit Ambit Asset Management’s distinctive bottom-up investment style which is marked by low beta, capital protection, commitment to quality and concentrated portfolios. In this newsletter, we discuss: 1) Return of Quality Investing Style, 2) Snowball Effect on Investing, and 3) Quality and Longevity aspect of one of our portfolio holdings, Abbott India.