LC SageOne

Select Stock Portfolio

A Long-Only Equity Fund

An open-ended fund comprising of 12-20 best-in-

class businesses poised for strong, long-term
growth.

Confidential Discussion Document. See important legal information inside.

Disclaimer
This document is prepared and distributed by LC Capital India for information purposes only. These information / opinions / views in this document are not meant to serve as a professional investment guide for the readers. Readers are advised to
seek independent professional advice and take informed trading/investment decision before proceeding with any investments. Any recommendations, made herein are expression of views and/or opinions and should not be deemed or construed to
be advice for the purposes of purchase or sale of any security, derivatives or any other security through LC Capital India nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies)
referred to herein. Recipients of this Document should rely on information/data arising out of their investment decisions.

This document has been prepared on the basis of publicly available information, internally developed data and other sources believed by LC Capital India to be reliable. LC Capital India or its Directors, employees, affiliates or representatives do not
assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information/opinions / views.

While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of LC Capital India shall be liable for any direct, indirect, special, incidental,
consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained in this document.
Risk Factors: Investments in securities are subject to market risks. The value of the Portfolios can go up or down depending on various market factors. Past performance of the Portfolio Manager does not indicate the future performance of the
Products or any other future Products of the Portfolio Manager. There are no assurances or guarantees that the objectives of any of the financial product(s) / instrument(s) will be achieved.
The investments may not be suited to all categories of investors. Investors are not being offered any guaranteed or indicative returns through any of the products/recommendations. The names of the Products do not in any manner indicate their
prospects or returns. The performance of the Products may be adversely affected by the performance of individual issuer companies, changes in the market conditions, micro and macro factors and forces affecting capital markets in particular like
interest rate risk, credit risk, liquidity risk and reinvestment risk. Derivative/future and options products are affected by various risks including but not limited to counter party risk, market risk, valuation risk, liquidity risk, basis risk and other risk.
Please read the Disclosure Document of the proposed investment before investing.
Disclaimers in respect of jurisdiction: The possession, circulation and/or distribution of this document may be restricted or regulated in certain jurisdictions by appropriate laws. This Document shall not be possessed, circulated and/or distributed
in any such country or jurisdiction unless such action is in compliance with all applicable laws and regulations of such country or jurisdiction. LC Capital India requires such recipient to inform himself/herself about and to observe any restrictions at
his own expense, without any liability to LC Capital India. Any dispute arising out of this document shall be subject to the exclusive jurisdiction of the Courts in India. No action has been or will be taken by LC Capital India in any jurisdiction (other
than India), where any action for such purpose(s) is required.

Certifications: The research analyst(s) who prepared this document hereby certifies that the views /opinions expressed in this document reflect his/their personal independent views/opinions in respect of the securities and their respective issuers,
and that he has/they have no known conflict of interest in providing such views/opinions.

Copyright: The copyright of this document belongs exclusively to LC Capital India. This Document shall only be read by those persons to whom it has been delivered. No reprinting, reproduction, copying, distribution of this Document in any manner
whatsoever, in whole or in part, is permitted without the prior express written consent of LC Capital India.

Important: These disclaimers, risks and other disclosures must be read in conjunction with the information / opinions / views of which they form part of.

LC Capital India is not an affiliate of Lighthouse Canton Pte Ltd (LCPL), Singapore (that holds Capital Markets Services (CMS) License from Monetary authority of Singapore). Lighthouse-Canton brand and logo are owned by Lighthouse Canton
Investment Holdings Pte Ltd(LHIC) and have been granted for use to LC Capital India and Lighthouse Canton Pte Limited, by means of Licensing agreements.

2
Important Legal Information

This presentation is a general overview of SageOne Investment Advisors LLP’s (SageOne or Manager) PMS offering and SageOne is the sole manager of the PMS which is registered
with SEBI. This overview is being furnished on a confidential basis solely to a limited number of sophisticated prospective investors considering the investment in PMS. Any
reproduction or distribution of this overview, in whole or in part, or the disclosure of its contents, without the prior written consent of the Manager, is prohibited.

This document is being provided to you solely for your convenience. However, it is not intended to be, nor shall it be construed as, an offer, or a solicitation of an offer, to buy or
sell an interest in the Funds. Nothing in this document constitutes accounting, legal, regulatory, tax or other advice. Any decision to subscribe for interests in the PMS must be
made solely on the basis of information contained in the respective Information Memorandums, which information may be different from the information contained in this
document. The information contained in this document, including any data, projections and underlying assumptions are based upon certain assumptions, management forecasts
and analysis of information available as at the date of this document and reflects prevailing conditions and our views as of the date of the document, all of which are accordingly
subject to change at any time without notice and the PMS and the Manager are under no obligation to notify you of any of these changes. In preparing this document, we have
relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was otherwise reviewed by us.
While the information provided herein is believed to be reliable, the PMS and the Manager make no representation or warranty whether express or implied, and accept no
responsibility for its completeness or accuracy or reliability. The performance related data has not been verified by SEBI.

The information contained herein relating to the performance of portfolios is for historical information only. You should note that past performances are not indicative of future
performance.

3
Executive Summary : LC SageOne Select Stock Portfolio

• India dedicated long-only equities strategy launched in June, 2020

• Focus is on companies with a high structural growth, high profitability & quality management

• High conviction portfolio of 12-20 high growth stocks across multiple sectors
• Derived from SageOne’s flagship core and small/micro cap offering (SCP & SSP)
• Multi-cap portfolio with primary focus on INR 500cr – INR 30,000cr market cap range
• Buy & hold discipline based on multi-year view – repeatable investment process, low turnover
• Proven track record of outperformance with lower downside risk^

^ Based on performance of SageOne Core Portfolio since inception in April 2009 versus Nifty Index

4
Investment Team : SageOne Investment Advisors

Samit Vartak, CFA

Samit Vartak is the Founding Partner and Chief Investment Officer of SageOne Investment Advisors LLP. Samit has been investing in the
FOUNDER & CIO

equity markets since 1999 and has experienced and studied many bull and bear cycles over the last two decades. Samit’s focus is on
building long term wealth for the clients even if it means sacrificing short term money making. He believes in risk management not by
seeking extreme diversification or buying sub-par businesses at low multiples, but by building a reasonably diversified portfolio of high
quality businesses having long term competitive advantages in attractive and high growth industries.
Samit returned to India in 2006 after spending a decade in the USA working initially in corporate strategy with Gap Inc. and PwC
Consulting, and then with Deloitte and Ernst & Young advising companies on business valuation and M&A. This experience forms the
backbone that helps him better understand businesses and their fair value. Samit is a CFA® charter holder, an MBA from Olin School of
Business, Washington University, US and holds a Bachelor of Engineering degree with Honors from Sardar Patel College of Engineering
(SPCE), Mumbai University.
Samit actively shares his knowledge through investor newsletters, lectures at CFA society/industry forums and media interviews.
INVESTMENT TEAM

Parin Gala, Pratik Singhania, Dushyant Mishra, Yog Rajani

VP – Research & Senior Research Analyst Research Analyst Research Associate
Fund Accounting

*Detailed bio of Investment Team in the Appendix below

5
Fund : Structure

Investment Management Entity- Exclusive Marketing Entity-

SageOne Investment Advisors Light House India
(India-based SageOne (India Entity of Light House
PMS structure) Canton, Singapore)

LC SageOne Select
Stock Portfolio

6
WHY SAGEONE?

7
Key Strengths

• Proven track record of identifying multi-baggers

Timely Entry - Bajaj Finance, PI Industries, Maharashtra Scooters, Apl Apollo Tubes , Godrej
Properties, Aarti Industries, Amara Raja, La Opala etc

• Successful more often than not at timely exits

Successful Exits - Kaveri Seeds, Page, SPARC, Amara Raja, Sundaram Finance, Cera, Repco, Exide etc

•Understanding of emerging economic trends, businesses and their competitiveness

•Strong network enabling robust ground checks
In-Depth Understanding •Ability to identify companies that grow at significantly higher rate than the industry
- Last seven year’s portfolio weighted average earnings growth of 30% (CAGR)

•Team with collective 50+ years of experience and across several cycles
•Bottoms-up research supported by scientific screening process for shortlisting right
Investment Management Team & sectors & stocks
Process •Extremely replicable process with proper back-end quantitative & qualitative
research

8
Investment Philosophy : Filters for Selection
Objective : Build and maintain a portfolio in high conviction growth ideas available at prices at or below fair value

Businesses that offer minimum 20% compounded earnings growth at individual

level and 25% at the portfolio level
Superior
growth
Businesses that gain market share which contributes significant portion of their
Reasonable Market earnings growth
valuation share gain

Portfolio Businesses that are strong and profitable with ROE > 20% to fund this growth
internally
Construct
Low
Efficiency Businesses with incremental ROE that is higher than existing ROE and which
leverage,
and Moat generally result in increasing margins and valuation multiples
high return
New ROE >
Existing
Most efficient players in industries we like; leaders or expected to be leaders
ROE
due to their superior strategy and positioning

9
Risk Management Framework

Sectoral and stock Active monitoring

limits Prudent rebalancing and action
Financial and business
analysis by using public strategy in place to
databases on in-house strengthen winners and
models Maximum allocation of cull out losers Strong network across
25% to any one/closely Active calls on portfolio industries for channel
Internal Forensic model related sector/s; checks across portfolio
for culling out liquidity levels basis
Sectors can be related by external risk factors such companies and
questionable business common end-users as well competition
practices and as
as common raw material
management exposures - Macroeconomic Active entry/exit calls
parameters depending on changing
Portfolio construction Maximum 20% exposure business dynamics or
targeting to minimize non- to any business group - Market volatility valuations
systematic risk - Valuations

Prudent stock selection Timely rebalancing

10
Proven Track Record : Consistent Outperformance
Period (Apr 1 - Mar 31) SCP NIFTY 50 TRI NSE Midcap 100 TRI NSE Smallcap 100 TRI BSE 500 Validation/Review
FY 2021 YTD (Dec'20) 91.1% 63.8% 79.0% 98.2% 64.9% SEBI Filed - PMS
FY 2020 -25.4% -25.02% -35.06% -45.30% -27.5% SEBI Filed - PMS
PMS
FY 2019 -9.8% 16.45% -1.86% -13.52% 8.3% SEBI Filed - PMS
FY 2018 31.2% 11.76% 10.25% 12.52% 11.8% SEBI Filed - PMS
FY 2017 28.5% 18.9% 35.5% 43.2% 24.0% KPMG - IA
Investment
FY 2016 -7.3% -8.9% -1.9% -13.1% -7.8% KPMG - IA
Advisory
FY 2015 111.0% 26.7% 51.0% 52.3% 33.2% KPMG - IA (KPMG
FY 2014 68.0% 18.0% 16.4% 17.8% 17.1% KPMG - IA Reviewed)
FY 2013 26.0% 7.3% -4.0% -7.5% 4.8% KPMG - IA
FY 2012 11.4% -9.2% -4.1% -5.5% -9.1% KPMG - IA CIO’s Personal
FY 2011 31.4% 11.1% 4.4% -1.0% 7.5% KPMG - IA Portfolio
(KPMG
FY 2010 175.3% 73.8% 126.1% 129.4% 96.4% KPMG - IA
Reviewed)
Annualized Returns 35.7% 14.4% 17.1% 14.0% 15.1%
Cumulative Returns 3512.9% 386.7% 537.6% 367.9% 419.4%
% Positive Months 66.0% 57.4% 60.3% 59.6% 58.9%
Annualized Stdev 35.9% 19.9% 24.5% 29.8% 20.9%
Sharpe (RFR 6.0%) 0.83 0.42 0.45 0.27 0.43
Performance/Return numbers mentioned are net of fees and costs. For period up to Feb 2017, portfolio returns and benchmark returns are excluding dividends; post Feb 2017, portfolio returns and benchmark returns (TRI -
Total Return Index) are including dividends. Performance numbers are based on KPMG’s report for financial years ended 31st Mar 2010 to 31st Mar 2017. Post Mar’17 they are based on SEBI PMS filings calculated using ’Time
Weighted Rate of Return’ method in terms of Regulation 22 of the SEBI (Portfolio Managers) Regulations, 2020. Past performance is not an indication or promise of future performance. The performance related data has not
been verified by SEBI.; Source: SOIA estimates, ACE Equity.

11
From Stock Picking to Disciplined Portfolio (Net Returns in INR)
NSE Midcap NSE Smallcap 100
Period (Apr'12 - Dec'20) SCP Nifty 50 TRI BSE 500
100 TRI TRI
Latest 8 Years 9 months 28.5% 12.4% 12.6% 9.3% 12.1%
Latest 8 Years &
Cumulative Returns 796.4% 177.7% 181.7% 118.0% 170.7% 9 Months
% Positive Months 66.7% 58.1% 60.0% 58.1% 59.0% (Formal funds
management)
Annualized Stdev 22.6% 17.0% 22.0% 27.2% 17.6%
Sharpe (RFR 6.0%) 1.00 0.38 0.30 0.12 0.34

Period (Apr '09 - Mar '12) SCP Nifty NSE Midcap 100 NSE Small cap 100 BSE 500

First 3 Years 59.1% 20.6% 31.3% 29.0% 24.3%

Cumulative Returns 303.1% 75.3% 126.3% 114.6% 91.8% First 3 Years
(Proprietary funds
% Positive Months 63.9% 55.6% 61.1% 63.9% 58.3%
only)
Annualized Stdev. 59.6% 26.7% 30.6% 36.4% 28.5%
Sharpe (RFR 6.0%) 0.89 0.55 0.83 0.63 0.64

The performance related data has not been verified by SEBI.

Please refer to the notes on the previous page.

12
From Stock Picking to Disciplined Portfolio (Net Returns in INR)

Absolute returns Annualised Returns

Since
Period (as of Dec 31, 2020) 1 month 3 months 6 months 1-year 2-year 3-year 5-year Inception
(Apr 1, 2009)

SageOne Core Port (SCP) 10.4% 24.3% 52.5% 38.3% 21.4% 7.0% 15.2% 35.7%

SageOne Small/Micro Cap 30.7%

3.2% 16.8% 54.7% 61.3% NA NA NA
Portfolio (SSP) (Apr’19)

NSE Mid-cap 100 TRI 5.7% 22.9% 42.4% 23.0% 9.0% 0.5% 10.2% 17.1%

NSE Small-cap 100 TRI 7.8% 21.9% 54.3% 22.8% 6.0% -7.0% 5.5% 14.0%

BSE 500 7.7% 23.2% 36.2% 16.8% 12.2% 6.8% 11.5% 15.1%

The performance related data has not been verified by SEBI.

Please refer to the notes on the previous page.

13
Quality Portfolio : Consistently High Earnings Growth

SCP Nifty 50 BSE 500

80.0%
70.0%
60.0%
50.0%
40.0%
SCP Avg 33.1%
30.0%
20.0% Nifty Avg 8.4%
10.0%
0.0%
-10.0% BSE 500 Avg 4.9%
-20.0%
Jun-13

Jun-14

Jun-15

Jun-16

Jun-17

Jun-18

Jun-19

Jun-20
Dec-12

Dec-13

Dec-14

Dec-15

Dec-16

Dec-17

Dec-18

Dec-19
Sep-13

Sep-14

Sep-15

Sep-16

Sep-17

Sep-18

Sep-19

Sep-20
Mar-13

Mar-14

Mar-15

Mar-16

Mar-17

Mar-18

Mar-19

Mar-20
Source: SOIA estimates

14
Historical Returns Driven by Earnings Growth Unlike the Market

12.00
• SCP returns have been consistent with the weighted Portfolio Earnings
average earnings growth of the portfolio companies (SCP)
10.00

• Nifty returns have been well ahead of the earnings

8.00
growth of the constituents

6.00 Portfolio Returns

• Returns driven by valuation rerating (expansion) is (SCP)
very difficult to replicate compared to return driven
4.00
by earnings growth NIFTY Returns

2.00
Nifty Earnings
-

Growth in amount invested and earnings over 8 years assuming starting at the same base
of 1.0 as of March 31, 2012
Source: SOIA estimates and Bloomberg

15
 CURRENT
OPPORTUNITY

16
Where are We Finding Attractive Opportunities

• Majority of institutional holding is in the top 100 Indian Listed Market Breakup
stocks which are quite fairly priced Cos. by Mcap Mcap Range
Median PEx
(As of Dec 31, 2020) (INR cr)
Top 100 >34.3K 40.6
• The size of these companies is large and hence >20%
101 - 200 15K-34.2K 33.9
earnings growth on sustainable basis very difficult
201 -300 7.6K-15K 37.8 Our
301 - 400 4.5K-7.6K 25.3 Hunting
• Given our targeted growth and requirement of 401 - 500 2.6K-4.5K 21.7 Ground at
attractive valuations, our hunting ground is generally 501 - 600 1.8K-2.6K 19.5 Entry
beyond the top 100 cos 601 - 700 1.2K-1.8K 19.8

Source: SOIA, Ace Equity Database

17
Quality Portfolio : Portfolio P/E Multiple at Attractive Levels
TTM PEx of the Subsequent Annualized
Current valuation is the lowest in 7 years Period
Portfolio Returns* (%)
Historically these valuation levels have delivered significant outperformance Dec-20 22.0 ??
as well as absolute returns Jun-20 15.0 52.5
P/E multiple and Returns have been inversely correlated Dec-19 15.4 38.3
Jun-19 18.4 25.4
80.0 PMS Closed
Dec-18 22.6 21.4
Portfolio PEx and for New
70.0 Jun-18 29.5 13.6 Subscriptions
Subsequent Annualized
60.0
Dec-17 32.5 7.0
Jun-17 26.0 4.1
50.0 Dec-16 25.4 10.6
40.0 Jun-16 29.7 14.1
Very limited
PEx Dec-15 31.3 14.0 fund raise
30.0
Jun-15 32.5 17.2
20.0 Dec-14 31.0 29.8
10.0 Returns Jun-14 24.3 34.0
Dec-13 19.1 41.5
-
Jun-13 17.4 51.8
Jun-12

Jun-13

Jun-14

Jun-15

Jun-16

Jun-17

Jun-18

Jun-19

Jun-20
Dec-12 14.6 53.7
Jun-12 12.4 66.8
Source: SOIA, Ace Equity Database *Returns until Jun’17 are for 3 years annualized. Beyond that are annualized for the
subsequent period until Nov’20; Source: SOIA estimates and ACE Equity

18
Fund Structure & Terms

Terms

Name LC SageOne Select Stock Portfolio (LCSP)

Strategy Type Active long-only strategy in listed Indian equities

Investment Manager SageOne Investment Advisors LLP

Fund Manager Mr. Samit Vartak, CFA

Minimum Contribution INR 1 cr.

Exit Load No Exit Load

Benchmark Avg of NSE Mid cap 100 TRI & NSE Small cap 100 TRI

Custodian Edelweiss Custodial Services Limited

Taxation LTCG/STCG at individual level

19
Our Fee Structure

Slab Capital Commitment Fixed Management Fees* Variable Management Fees**

1 INR 1 cr to < INR 5 cr 2.50% Nil

2 INR 5 cr to < INR 10 cr 2.25% Nil

No Catch-up
3 INR 10 cr to < INR 15 cr 2.00% Nil

4 INR 15 cr and above 1.75% Nil

1 INR 2 cr to < INR 5 cr 1.00% 15% sharing above 10% hurdle

2 INR 5 cr to < INR 10 cr 0.75% 15% sharing above 10% hurdle

3 INR 10 cr to < INR 15 cr 0.50% 15% sharing above 10% hurdle

4 INR 15 cr and above 0.25% 15% sharing above 10% hurdle

* Charged on a quarterly basis; Plus GST and all statutory levies as applicable
** Variable fees for PMS strategies will be charged annually
Higher water-mark applicable

20
Case Study: APL Apollo

Entry: INR 946 (USD 14) ; Market Cap INR 2,230 cr (USD 330m) in July 2016

Investment Hypothesis: APL APOLLO TUBES LIMITED - SHARE PRICE MOVEMENT

APL APOLLO TUBES LIMITED - SHARE PRICE MOVEMENT
 Pan India capacity expansion and improved Rs

utilizations 1,000

900

 Focus on brand building and deeper 800 High PE of 29.9 and a lower
penetration of its distribution network 700 Low PE of 15.5 and a
revenue growth of 10.5%
casues sell off from
600 high revenue growth investors but business stays
 Economies of scale providing it with a cost of 21.2% present as a strong with great future
500 great entry point
advantage in a highly fragmented market
400

 Insulation from imports 300

200
 Planned capacity expansion in the Middle east 100
39% Revenue CAGR over Covid-19
led fall
to boost exports last 5 years
-
Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 Oct-19 Apr-20 Oct-20
 Wide range of product portfolio and new
product initiatives indicates holding period

21
Case Study: Polycab India

Entry: INR 615 (USD 9) ; Market Cap INR 10,500 cr (USD 1.5bn) in June 2019

POLYCAB INDIA-SHARE PRICE MOVEMENT

Investment Hypothesis:
Rs POLYCAB INDIA - SHARE PRICE MOVEMENT
 18% market share in the organized cable and 1400

wire and 12% overall, which is significantly 1200

higher than any other player. Covid-19
1000 led fall

 Strong distribution model with 3100 800

authorized dealers delivering to 100,000 Run up in price post
retail outlets. 600 stellar earnings; PE
still less than half
Low PE forcompany with
400 that of competitors
excellent track record and
 Sectoral tailwinds like Housing for All huge market share in cables
scheme and rural electrification present as
200

opportunities for expansion in the market 0

share.
Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20

indicates holding period

22
APPENDIX

23
SageOne Investment Advisors – Organisational Chart

Samit Vartak (Founder & CIO)

Investments Sharad Pachisiya (CEO)

Parin Gala Business Development Operations

Neha Agarwal Alok Nagpurkar

Pratik Singhania
(COO)

Dushyant Mishra Renuka Patil Ashish Gavhane

Yog Rajani Awalokita Prabha Neha Gadgil

24
Contact Details

ADDRESS EMAIL TELEPHONE

LC Capital India Pvt ltd. [email protected] Office: +919650473961
Ground floor, Cowrks,
Worldmark 1,
Aerocity.
New Delhi 110037

25