True Beacon AIF View

IME AIF Rating: 4-star | Open for subscription: Yes | AIF Category: Others
  • Differentiation: True Beacon has clear differentiation as an AMC, arising from both a clear alternatives approach and a disruptive pricing model
  • Founders’ pedigree: The Kamath brothers have a very high degree of credibility, in terms of the scaling of Zerodha. This gives the AMC a high degree of founder credibility. A great first year of strategy outperformance also adds to the appeal
  • Lack of experience in Investment Management: while their brokerage credentials are strong, their AMC credentials are still relatively new. A lack of a publicly available historic investment track record of the Kamath brothers makes it difficult to judge the relevance of longer-term credentials.
  • Yet to scale: True Beacon is still a relatively young AMC that is yet to truly scale, even as they appear to have the potential.
  • Need to establish LT Track record for the strategy: True Beacon seeks to launch differentiated investment strategies, that are a combination of traditional long-only strategies and more sophisticated long-short strategies. These have a clear value in terms of differentiated risk-returns, even as conceptually some of these strategies can be considered similar to a dynamic asset allocation fund. The ability to outperform on long-short strategies consistently needs to be tested over a longer period to truly understand the value of these strategies.
  • There are clear points of appeal for what True Beacon is trying to build. A very strong first year, differentiated strategies and a disruptive pricing model are all positives. However, they are still a very young AMC and a lack of publicly available longer-term performance of the founders long-short strategies do not allow for a more aggressive 5-star rating.

PMS Background

True Beacon was established in early 2019 by Nikhil Kamath. Nikhil Kamath is very well known for his Bangalore-based unicorn Zerodha, India’s largest stockbroking platform. The AMC is built on client alignment through a zero-standing fee model. The AMC serves UHNI and HNIs. 

PMS Investment Philosophy

True Beacon takes a long-term, defensive approach. 


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