ETMarkets AIF Talk: Siddharth Oberoi shares 3 factors to consider for picking stocks from his 27 years of experience

economictimes.indiatimes.com:

“For the year 2023, till date, we have been able to generate 71% returns at the portfolio level, and we like to invest in companies that have a return on capital substantially higher than the cost of capital," says Siddharth Oberoi, Fund Manager — Prudent ACE Equity Fund.

In an interview with ETMarkets, Oberoi said: “The philosophy has worked for us over the last 27+ years and we are quite confident that it will continue to outperform in the future as well,” Edited excerpts:

Thanks for being part of the segment. Prudent Ace Equity Fund has given stellar returns since its launch. Take us through the performance.
The fund will complete its first year in December 2023. We follow the calendar year for performance measurement. For the year 2023, till date, we have been able to generate 71% returns at the portfolio level.

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We still have a few weeks left to close the year. Since inception, we have delivered substantially higher returns than the index over the recorded periods.

The portfolio is a mix of large, mid, and small-cap stocks and is pretty well diversified. However, we have a large concentration in the Infrastructure/construction sectors.

What is the investment philosophy that you follow while picking stocks for the fund?
The fund’s investment philosophy focuses on three key things namely,

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1) invest in growth,
2) buy at a discount to the