When technique is perfected,

results are effortless…

May 2018
Executive Summary

Company
• Started as Family Office in 2009 to manage its own funds. Based out of New Delhi
• Managing Public Funds since 2011

Product
• Diversified Long Only PMS. Four focused Schemes – Large, Mid, Small, and MultiCap
• Stock selection based on fundamental and technical parameters using a proprietary Artificial
Intelligence based algorithm developed over 10 years

Performance
• All Four Schemes have outperformed the benchmark and most comparable funds
• Since inception, PicoPower has returned 495% vs. 165% of BSE SmallCap
• Exceptional Risk-Adjusted-Returns per Morningstar study

Pedigree
• Founders Renowned Business Executives and Eminent Computer Scientists
• Part of Global Executive Leadership team and Managed large Businesses at Adobe – a Fortune 500
company - for two decades

Promoter Commitment
• Out of Rs. 1121 Crore of AUM as on 30th Apr 2018, founders investment is Rs. 578 Crore

2
 Portfolio Philosophy Based on Deep Science

Objective
• Own diversified portfolio of 12 – 35 high quality Companies

Intelligent Ranking Algorithm

• Stock Selection Based on Artificial Intelligence Driven Ranking Algorithm
• Back Tested on data from Jan 1, 1999 and deployed in market since 2009
• Blend Business Growth, Stock Value, and Stock Price Momentum while Controlling Risk
• Comprehensive Valuation Analysis

Strong focus on Business Fundamentals

• Long Term Earnings trend
Risk
• Strength of Balance Sheet

Risk Management
• Promoter Risk
• Business Growth Risk
• Solvency and Liquidity Risk Value Growth
3
 Investment Process

Stage 1 Stage 2 Stage 3

•Filtering
Core * AI Based
•Scrubbing Spatio-Temporal
•Quality of Earnings
Reported Ranking Ranked Portfolio
Earnings Earnings and
* Algorithm Universe Construction
Portfolio
Analysis Balance Millions of data
•Corporate Sheet points
Governance

4
Stage One: Core Earnings

1000 Largest ~800 Largest Core Earnings – 800

Companies Companies Companies

• Filter out • Adjustment for • Standardized

• Government one offs • Earnings truly
Owned Reported and Representative
• Tightly Deduced of Core Business
regulated • Consistency and are
• Poor between Recurring
Corporate Earnings, Cash
Governance Flows and Taxes

5
Stage Two: Factors For Model Ranking

• Revenue, Core Earnings and Cash Flows

Growth • 20 Quarters Trend Analysis
• Adjusted for Seasonality

• Trend Analysis of Margin and Return on Capital Employed

Core Strength & •
•
Strength of Balance Sheet, Solvency, Liquidity
Delta between Cash Flows and Earnings
Risks • Return on Marginal Invested Dollar
• Stock Price Momentum over Short / Mid / Long Term

Valuation • Universe
• Peers
Relative To • History

6
 Stage Three : Portfolio Construction
Product Alpha 10 PicoPower Dynamo AlphaGen

Type Large Cap Mid Cap Small Cap MultiCap

Across Market
Investment Capitalization.
501 – 800
Universe By 100 Largest 101 – 500 Largest Relative Allocation
Largest
MarketCap based on relative
valuation

Portfolio Size
12 - 20 25 - 35 25 - 35 30 – 40
(# of Stocks)

Maximum Single
30% 20% 20% 20%
Sectoral Exposure

Potential Upside Moderate Significant V. Significant Moderate

Volatility Low-Medium Medium High Low-Medium 7

 Disciplined Approach to Portfolio Management

What we Do
• Low Churn - average holding period is 2 years
• Mostly Fully Invested. No attempt to time the Market
• Tax efficient Investing – All gains are Long Term Capital Gains
• Portfolio is rebalanced on a pre-defined Schedule and usually once a year
• Stock exits the portfolio if the rank is below cut-off on the rebalance date
• Exiting Stock is replaced by the new high ranked stock while keeping number of stocks in portfolio
constant

What we Would not Do

• Short Term Investments, Derivatives or Leverage
• Develop Personal Relationships with managements of investee companies
• Invest Based on Stories, Tips, or Whispers
• Invest in Public Sector Company
• Invest in Fad or Hot Sector
• Invest in IPOs

8
Summary : Investment Philosophy & Process

• Disciplined • Non-emotional

+ +

Fundamental Technical

+ +

Algorithmic Long Term

• Unbiased + • Comprehensive

9
What Causes Outperformance

Portfolio Companies bought at discount to market while their earnings growth

post purchase ahead of market

Price / Core Earnings Ratio Earnings Growth

Market Portfolio Market Portfolio

Pico Power 27 15 0% 39%

Alpha 10 26 16 3% 28%

All the figures mentioned, are calculated for period Jan 2012 to Mar 2017
10
Performance
 Absolute Returns - on 30th Apr; Net of all Expenses /Fees

Since Inception
3 Month 6 Month 1 Year 2 Year 3 Year 5 Year
Inception date

2.2% 7% 19% 44% 47% 168% 184% 19-Sep-11

BSE100 -2.3% 3% 15% 40% 34% 88% 117%

2.6% 7% 28% 87% 78% 387% 495% 10-Oct-11

BSE SMALLCAP -1.7% 5% 20% 67% 68% 196% 165%

0.5% 6% 27% 71% 63% 31-Dec-15

BSE 500 -2.0% 4% 16% 45% 42%

-0.8% 14% 64% 132% 31-Dec-16

BSE SMALLCAP -1.7% 5% 20% 53%

12
 Quarterly Returns – Pico Power

50%

40%

31%
30% 26%
23% 24%
21% 18%
20%
14% 13%
14% 12%
9% 9% 12%
10% 11% 7%
6%
4% 3%
0% 5%
0% -1% 0%
-5%
-10% -7%
-12%
-15%
-20%

-30%

PICOPOWER BSE SMALLCAP

• Outperformed the Benchmark in 21 out of 26 quarters

• Beaten the market consistently in all market conditions – Up, Down and Flat quarters
• Of the 10 negative quarters in the market, gave positive returns in 5 quarters

13
 Comparison Peer Mutual Funds – Pico Power

785 Accuracap Pico Power Aditya Birla SL Small & Midcap-G

Canara Robeco Emerging Equities Reg-G DSPBR Midcap Reg-G

717
IDFC Sterling Equity Reg-G Edelweiss Mid Cap Reg-G
685
BSE Small Cap Index

585

525

485 488

426
401
385

296
285

185

85

14
 Quarterly Return – Alpha10

20%
17%

15%
12% 12% 14%
12%
10% 11%
10% 8% 8%
7% 7%
7%
5% 5% 7% 5% 5%
5%
2%

0%
0% 0%
-1%
-3%
-5% -3% -4% -3%

-10%

-12%
-15%

ALPHA10 BSE100

• Outperformance in both positive and negative market conditions

15
 Comparison Peer Mutual Funds – Alpha10

385
Accuracap Alpha10 Aditya Birla SL Top 100-G
BNP Paribas Equity-G DSPBR Top 100 Equity Reg-G
HDFC Top 200-G ICICI Pru Focused Bluechip Equity-G
335 IDFC Focused Equity Reg-G Kotak 50 Reg-G
BSE100 328

303

285
279

264
252
243
235

185

135

85

16
 Quarterly Return – AlphaGen

25%

20% 19%

15% 13%
13%
12%

10%
8%
7%
5%
5%

0%

-5%

-6% -7%
-10%
-9%

-15%
Mar/16 Jun/16 Sep/16 Dec/16 Mar/17 Jun/17 Sep/17 Dec/17 Mar/18

ALPHAGEN BSE 500

• Outperformed in 6 out of 10 quarters

17
 Comparison Peer Mutual Funds – AlphaGen

170
Accuracap AlphaGen ICICI Pru Value Discovery Fund-Reg(G)
163
160 Franklin India Prima Plus HDFC Multicap

SBI Magnum Multicap Fund ICICI Prudential Multicap Fund 154

150
Birla Sun Life Equity Fund BSE 500
144
142
140
136

130
128
125

120

110

100

90

80
Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18

18
 Quarterly Return - Dynamo

40%
35%

30% 28%

21%
20%

14%
10%
10%

0%

-10%

-12%

-20%
Mar-17 Jun-17 Sep-17 Dec-17 Mar-18

DYNAMO BSE500

• Outperformed the Benchmark in 5 out of 6 quarters

19
 Comparison Peer Mutual Funds – DYNAMO

240

Accuracap Dynamo DSPBR Small Cap Reg-G 232

220 Franklin India Smaller Companies-G Sundaram S.M.I.L.E. Reg-G

Reliance Small Cap-G BSE Small Cap Index

200

180

160 160

146
140 140
135

120

100
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18
20
Investment Examples
 100
200
300
400
500
600
700
80
580
1580
2080

1080
Jul/14

Oct/14

Jan/15

Apr/15

Jul/15

Oct/15

Jan/16

MINDAIND
AVANTIFEED
Apr/16
Some Big Winners

Jul/16
Avanti Feeds

Oct/16

Minda Industries
Jan/17

BSE SmallCap
BSE SmallCap
Apr/17

Jul/17

Oct/17

Jan/18
71%
1701%

73%
445%
Apr/18

100
150
200
250
300
350
400
450
500
550
80
180
380
480
580
680
780
880
980

280

Oct/13 Apr/13
Nov/13
Jun/13
Dec/13
Aug/13
Jan/14
Oct/13
Feb/14
Dec/13
Mar/14
Feb/14
Apr/14
May/14 Apr/14
DHANUKA

Jun/14 Jun/14
AJANTPHARM

Jul/14 Aug/14
Aug/14 Oct/14
Sep/14 Dec/14
Dhanuka Agritech
Ajanta Pharma

Oct/14 Feb/15
BSE SmallCap

Nov/14 Apr/15
BSE SmallCap

Dec/14 Jun/15
Jan/15 Aug/15
Feb/15
Oct/15
Mar/15
Dec/15
564%

Apr/15
69%

370%

108%

22
 80
130
180
230
280
330
380
80
130
180
280
330
380
430

230
Apr/12
Jun/12
Aug/12
Oct/12
Dec/12
Feb/13
Apr/13
Jun/13

Lupin
Aug/13

LUPIN
HCLTECH
Oct/13
HCL Tech

Dec/13
Some Big Winners

Feb/14
Apr/14

BSE 100
BSE 100
Jun/14
Aug/14
Oct/14
Dec/14
Feb/15
Apr/15
Jun/15

50%
197%
60%
277%

80
130
180
230
280
330
380
80
130
180
230
280
330
380
430

Apr/13
May/13
Jun/13
Jul/13
Aug/13
Sep/13
Oct/13
Nov/13
Dec/13
Jan/14
BAJFINANCE

Feb/14
MOTHERSUMI

Mar/14
Apr/14
May/14
Bajaj Finance

Jun/14
BSE 100
Motherson Sumi

BSE 100

Jul/14
Aug/14
Sep/14
Oct/14
Nov/14
219%

Dec/14
39%
47%
268%

Jan/15
23
 Some Big Winners

880 580
780
Venkys 530
Phillips Carbon
702% 480
680
430 450%
580 380
480 330
380 280
230
280
180
180 42%
42% 130
80 80
Jul/17

Jul/17
Apr/17
May/17
Jun/17

Nov/17

Apr/18

Nov/16

Apr/17
May/17
Jun/17
Nov/16

Nov/17

Apr/18
Dec/16

Feb/17
Mar/17

Aug/17
Sep/17

Dec/17

Feb/18
Mar/18

Dec/16

Feb/17
Mar/17

Aug/17
Sep/17

Dec/17

Feb/18
Mar/18
Jan/17

Jan/18

Jan/17

Jan/18
Oct/17

Oct/17
VENKEYS BSE SmallCap PHILIPCARB BSE SmallCap

480 480
430
Bhansali Engineering 430
Gravita
380 380
330 342% 330 332%
280 280
230 230
180 180
17% 36%
130 130
80 80

BEPL BSE SmallCap GRAVITA BSE SmallCap

24
Independent Performance
and Risk Evaluation
 PicoPower - Top of the Charts on Multiple Parameters

Analysis by Morningstar

S&P BSE Morningstar OE Small/

Pico Power
Smallcap Mid-Cap Category

Alpha 15.06 - 5.26

Beta 0.84 1 0.81

Sharpe Ratio 1.26 0.69 0.95

Treynor Ratio 35.67 14.00 21.90

Sortino Ratio 2.21 1.22 1.71

“Compared with the benchmark, the strategy outperforms both in terms of risk and return. Meaning, Pico
Power not only assumes a lower level of risk, but also manages to outperform the benchmark at this risk
level.”

“It has not only outperformed the average peer in all trailing periods, but has beaten the top performer in
most periods” - Morningstar
Morningstar OE Small/Mid-Cap Category – Category comprising of all prominent small and midcap funds tracked by Morningstar
See full Morningstar report for more details 26
Alpha10 - Top of the Charts on Multiple Parameters
Analysis by Morningstar
S&P BSE Morningstar Open Ended
Alpha 10
100 Large Cap Category

Alpha 9.89 - 1.62

Beta 0.76 1 1.00

Sharpe Ratio 0.99 0.38 0.48

Treynor Ratio 19.96 5.03 6.82

Sortino Ratio 1.78 0.61 0.81

“On the trailing returns front, it has not only outperformed over the long term, but has also delivered
superior returns over longer time frames”

Morningstar OE Large-Cap Category – Category comprising of all prominent largecap funds tracked by Morningstar
See full Morningstar report for more details
27
One of its kind
Fee Structure
 One of its Kind “Investor-First” Incentive Fee Structure

Incentive Fee only if investor returns are higher than the Benchmark (only on excess
returns)

Profit Sharing will happen if and only if four conditions are met :

1. Positive Returns during the year

2. Higher returns compared to the benchmark

3. Overall Portfolio Value should be higher than the highest water mark
- no profit sharing until Investor is at a level higher than the highest historical point on which profit
was shared

4. Profit Sharing only on outperformance, not on entire returns

- For eg., if the investor makes 32% for the financial year when Benchmark made 30%, profit
sharing is 20% of excess returns, so 20% of 2% = 0.4%
29
 Fund Terms
Portfolio

Portfolio PICOPOWER, ALPHA10 & ALPHAGEN

Type of Offering
Portfolio Manager/Advisor
Benchmark
Minimum Investment
Management Fees & Expenses
Discretionary Portfolio Management Service (PMS) – Equity
Accuracap Consultancy Services Pvt. Ltd.
BSE Small Cap, BSE 100 & BSE 500 index respectively
Min. 50 Lacs per scheme.

Fixed Fee 1.5% p.a. (Charged on a quarterly basis)

20% of excess returns generated over Benchmark at the end of every FY (subject to
Incentive Fee
investment period of minimum 6 months)

Statutory/ Other charges as applicable (STT/ Demat/ Service Tax/Custodial charges

Other Charges
etc.)
Entry Load Upto 1%
Exit Load Before completion of 1 year : 2% of current investment value
After 1 year but before completion of 2 Years : 1% of current investment value
After 2 years completion : Nil
 Fund Terms
Portfolio DYNAMO

Type of Offering Discretionary Portfolio Management Service (PMS) – Equity

Portfolio Manager/Advisor Accuracap Consultancy Services Pvt. Ltd.
Benchmark BSE Small Cap index
Minimum Investment Min. 1 Crore
Management Fees & Expenses

Fixed Fee 1.5% p.a. (Calculated on Daily basis & Accrued on a quarterly basis)
20% of returns generated in excess of Hurdle Rate *(To be charged at the time of
Incentive Fee
Maturity on High Watermark basis)

Earlier of Three years from the date of investment OR the month end in which market
Maturity/Duration
value of Investment becomes double
Hurdle Rate 45% returns at the end of duration/ maturity period (mentioned above).

Other Charges Statutory/other charges as applicable (STT/ Demat/ Service Tax/Custody charges etc)

Entry Load Upto 1%

Exit Load 2% of last closing value if redeemed before the maturity
 Portfolio Execution Strategy and Performance
Reporting

• These being PMS products, each investor’s portfolio is managed separately in their own demat
accounts
• Portfolios are reviewed and formulated on a quarterly basis
• New investments in a given quarter are based on the portfolio for the quarter
• Investments made in different quarters may have different portfolios based on which stocks
comprised the quarterly portfolio at that time
• Returns experienced by a particular investor is dependent on several factors including which date in
a particular quarter they invested, individual restrictions in the investor’s portfolio, extraordinary
events specific to a company or a stock prompting changes in the middle of a quarter for new
investments.
• Not all investors will therefore have identical portfolios and will experience different returns
• Each investor gets their own portfolio and performance reports at the end of every month
• In addition, Accuracap might send general fund and performance updates to all investors from time
to time. Such updates refer to performance numbers at the overall fund level, i.e, based on the
aggregate of total funds managed under a particular product/strategy.

32
Partners

33
Founders

Dr. Naresh Chand Gupta

A Corporate Executive, Computer Scientist, and a prolific Researcher, Naresh is a Gold
medalist from IIT-Kanpur and a Ph.D from University of Maryland. Before pursuing
investing fulltime, Naresh was the founder and Managing Director of Adobe India from
1997 till March 2015. He conceived and grew Adobe’s presence in India to 3500+
engineers over 18 years. Under his leadership, 40% of Adobe's core research and
development was done at the Indian campus and several hundred global patents filed
from campus. As part of Adobe’s global executive team, he was running one of the three
global businesses in Adobe’s $8 Billion portfolio. Naresh is a prolific researcher and
inventor. He is the author of several widely referred and seminal scientific papers in the
area of Artificial Intelligence, Pattern Recognition, and Computer Vision. He holds seven
Individual U.S. Patents.

Raman Nagpal
A Computer Scientist, Serial Entrepreneur and Business Executive. Raman has a deep
background of technology and finance. He has been the inventor and founder of several
technologies and new businesses in the area of adaptive learning engines, spurious drug
detection system and application of data analytics in stock markets. Before pursuing
investment fulltime, he was at Adobe Systems for 13 years where he was running a $200
Million global business. Raman holds a Bachelor in Computer Science from Delhi Institute
of Technology and a Masters in Computer Science from BITS Pilani. He also earned a
Masters in International Business and is a Chartered Financial Analyst. He is a certified
Corporate Director from Insead Business School. He has over 20 years of experience of
investing in Indian markets and running global businesses – large enterprise as well as his
own startups. 34
 Thank You
Risk Disclosure And Disclaimer
Disclaimer: This presentation has been prepared and issued on the basis of internal data, publicly available information and other sources believed to be reliable.
The information contained in this document is for general purposes only and not a complete disclosure of every material fact and terms and conditions. The information /
data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice
to any party. All opinions, figures, charts/graphs, estimates and data included in this presentation are as on date and are subject to change without notice. While utmost
care has been exercised while preparing this document, Accuracap Consultancy Services Private Limited (here-in-after called “Accuracap”) does not warrant the
completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may
include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be
fully responsible / liable for any decision taken on the basis of this presentation. No part of this document may be duplicated in whole or in part in any form and/or
redistributed without prior written consent of Accuracap. Readers should before investing in the Scheme make their own investigation and seek appropriate professional
advice. • Investments in Securities are subject to market and other risks and there is no assurance or guarantee that the objectives of any of the strategies of
the Portfolio Management Services will be achieved. • Clients under Portfolio Management Services are not being offered any guaranteed/assured returns. • Past
performance of the Portfolio Manager does not indicate the future performance of any of the strategies. • The name of the Strategies do not in any manner indicate
their prospects or return. • The investments may not be suited to all categories of investors. • The material is based upon information that we consider reliable, but we
do not represent that it is accurate or complete, and it should not be relied upon as such. • Neither Accuracap, nor any person connected with it, accepts any liability arising
from the use of this material. The recipient of this material should rely on their investigations and take their own professional advice. • Opinions, if any, expressed are
our opinions as of the date of appearing on this material only. While we endeavor to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so. • The Portfolio Manager is not responsible for any loss or shortfall resulting from the
operation of the strategy. • Recipient shall understand that the aforementioned statements cannot disclose all the risks and characteristics. The recipient is requested
to take into consideration all the risk factors including their financial condition, suitability to risk return, etc. and take professional advice before investing. As with any
investment in securities, the Value of the portfolio under management may go up or down depending on the various factors and forces affecting the capital market.
Disclosure Document shall be read carefully before executing the PMS agreement . • Prospective investors and others are cautioned that any forward - looking statements
are not predictions and may be subject to change without notice. • For tax consequences, each investor is advised to consult his
/ her own professional tax advisor. • This document is not for public distribution and has been furnished solely for information and must not be reproduced or
redistributed to any other person Accuracap’s prior written consent. Persons into whose possession this document may come are required to observe these restrictions.
No part of this material may be duplicated in any form and/or redistributed without Accuracap’s prior written consent. • Distribution Restrictions – This material should
not be circulated in countries where restrictions exist on soliciting business from potential clients residing in such countries. Recipients of this material should inform
themselves about and observe any such restrictions. Recipients shall be solely liable for any liability incurred by them in this regard and will indemnify Accuracap for any
liability it may incur in this respect.

SEBI Certificate of Registration as Portfolio Manager INP000004037

Registered Office: 1580, Outram Lines, Dr. Mukherjee Nagar, Delhi - 110009 35