Spark India@75 Core and Satellite Strategy
Product Construct
The Core and Satellite Strategy builds a focused portfolio balancing high-conviction core holdings with tactical satellite positions, designed to capture alpha from the sector rotations that characterize Indian markets while benefiting from profit concentration among market leaders.
Focused Portfolio
About 25 stocks that straddle best-in-class performance and sector/theme rotation
Conviction-Based Allocation
High conviction equals bigger allocation; single-stock cap is 15% at investment
Earnings-Driven Selection
Stock selection done with a 1-2 year earnings horizon, bottom-up within a sector/theme
Disciplined Rebalancing
Satellite weights are reduced to lock in gains when price discovery is largely done, creating space for new picks
Sector, Market Cap & Ownership agnostic
Selection spans cyclical/non-cyclical sectors and public/private sector companies
01
Identify Price-Value Gaps
We look for mispriced assets with potential to generate sustainable alpha—whether from out-of-favour market segments, trends not well understood by the market, or internal changes in a company.
02
Look for Sustainability
We actively seek trends that have potential to make an impact 6-18 months out and longer & not just tactical mispricing.
03
Deep Dive and Generate Focus List
Rigorous analysis of balance sheets, business structures, management capabilities, shareholder alignment, and forecast building with emphasis on potential trigger points. This produces a dynamic focus list of 40-60 stocks.
04
Zero In on Best Picks
The CIO selects 15-30 stocks from which a portfolio is constructed with the objective of repeatable outperformance.
05
Diversified Across Market Caps
Large Caps: 50% | Mid Caps: 28.5% | Small Caps: 13.5% | Cash and Mutual Funds: 8%
Period | Portfolio | Nifty 50 TRI |
|---|---|---|
Since Inception (TWRR) | 19.9% | 14.7% |
3 Year (Annualized) | 17.6% | 13.1% |
5 Year (Annualized) | 22.4% | 16.5% |
*Inception: June 20, 2019 | Data as of November 30, 2025 | AuM: ₹373.5 Crores
Minimum Investment
₹50,00,000
Minimum Additional Investment
₹10,00,000
Benchmark
Nifty50 TRI
Exit Load
NIL
Market Cap Range
₹2,000 Crores to maximum market cap
Security Limit
Not more than 15% at investment
Investment Horizon
9-12 months and beyond for Core stocks 6-9 months for Satellite stocks
Leverage/Derivatives
Not used
Our returns have not been dependent on one or two stock picks. Alpha sources are fairly diversified—19 unique stocks have contributed to the top 50% of yearly returns since inception. This signifies a robust process with a higher probability of being repeatable. The strategy has navigated sector churns effectively, with IT services weight exceeding 30% before the post-Covid re-rating gathered pace (reduced to zero by early 2022 before the sector de-rated), and bank weights at nearly 33% before the significant outperformance commenced in 2022. This strategy is suitable for investors with an appetite for equity market risk and an investment horizon of 2-3 years who seek active portfolio management with a blend of stability and tactical positioning.
P. Krishnan
Managing Director & Chief Investment Officer
With more than three decades of experience in asset management and equities, Krishnan is one of the longest-serving fund managers in Indian equities.
Career Highlights
Whether you’re an investor seeking disciplined strategies or a business exploring growth capital, we’d welcome a conversation.
Right-Size, Monitor, Intervene
Portfolio construction involves right-sizing constituents at the outset with constant and intense monitoring, leading to corrective actions as required.
