Investment Philosophy
ATS Investment Philosophy

Clients Have Earned Money The Hard Way

We believe our clients have worked very hard to earn money and with that in mind we also work equally hard in making sure our client’s wealth is preserved in the best way possible. We spend considerable amount of time making sure that our client’s wealth is protected in the best way possible.

“Rule No. 1 – Not to lose client’s hard earned money

Rule No.2 -- Not to forget the Rule number 1”

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Alpha Generation

We have strong belief that for generating alpha returns over a long period of time, we need to have a mix of both Equity and Derivatives to beat index returns during all facets of market. As most of our investments are in Index Stocks, replicating market return becomes easier. With randomness in market one could generate Alpha by investing in few stocks in short run, for long term outperformance we need to have a mix of both Quality Equity Investment clubbed with exposure to derivatives.

Invest Only Profitable Stocks

We do not believe in turnaround stories until they have a proven track record. Most important philosophy while selecting a stock is the consistency in returns over a long period of time. There are no good or bad stocks. The company is either good or bad. Stocks are just stocks.

Large Cap And Large - Mid Caps Alone

We do not risk our client’s hard earned by investing into a small cap or a low midcap stock, for us considerable size of business is extremely important while committing any investment.

Our Bullish View On Indian Markets

As any other asset class, equity markets in India will continue to grow! Previous decades of upward market movement is a testimony to that. Our bullish view is not for few months or few years, but for entire life time of Equity Markets. Indian corporates will make money and the same will reflect as performance of Equity Market.

Consumption Will Continue To Grow

India’s current per capital income while compared to several other western countries is way lesser. As the per capita income increases, focus will shift from basic necessity to several other consumption led items. There will be more number of people buying cars, houses, jewelry, watches, premium clothing, and will travel with higher disposable incomes. Consumption industry in western countries is vast; there is no reason why India cannot match up to their consumptions levels with income levels improving every year. “Those bathing in Lifebuoy will soon buy Lux”

Price Is What We Pay And Value Is What We Get

When we buy a stock we actually buy ownership in a company. Future value of a stock is a function of present value and higher the price we pay, lower our returns would be. It is unsustainable optimism which makes stock too expensive and during time of pessimism it is the lesser price of a stock that makes its too cheap. As long as we are able to buy a stock which has a value commensurate with its price or lesser than its value, is when we are making the right decision. Our investment team spends lot of time in trying to understand the hidden values before we go on comparing them with the prices.

Risk Management

Our view on our Quant Fund is that, markets in general will continue to have random movement. Considering volatility as our friend, we build positions on derivatives by selling volatility. While such act alone can be risky at times, can be managed well with robust risk management system and that is where our schemes do well.

Managing Others Money Requires More Of A Character Than Brain

“It is remarkable how much long-term advantage; people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” - Munger We strongly believe that for anyone to do well in market, a solid strong framework of mind is required than the knowledge alone.

Only Long Term And No Churns

“If you aren’t thinking about owning a stock for ten years, don’t even think about owning it for ten minutes.” None of our investments made so far in any of our clients portfolio are ever churned, unless something goes terribly wrong with a business. We do not churn our portfolio by changing our investment decision; our view is intact and continues to be so forever.

Be A Contrarian

Just think about it – if you believe in the same things that everyone around you believes in, your returns will be more or less same as people around you. It takes a different thinking that enables you to outperform. Being different is necessary but not sufficient. You also need to be right.

No Technical And Fundamentals

We have banned Technical analysis in our offices. We do not believe in any technical analysis, when it comes to investing in stocks, for us, these are great businesses led by great managements.

“If I’d only followed CNBC’s advice, I’d have a million dollars today. Provided I’d started with a hundred million dollars.” - – Jon Stewart

ATS offers PMS Service where professional portfolio managers, backed by efficient and experienced researchers manage your investments with an aim to deliver consistent returns. We offer tailor made solutions to meet every client’s financial objectives. We at ATS understand that each individual has different financial goals, and so the portfolio managers offer flexible and customized investment strategies pertaining to each client’s portfolio.