Accuracap PMS

AMC Background

AccuraCap is a highly differentiated PMS, that uses Big Data and Behavioural Analysis to drive their quant-based strategies. Set up in 2009 by 2 renowned computer scientists to manage their personal portfolios (subsequently expanded to managing public money in 2011), Accuracap is one of the few pure-play quant-based PMS providers in India. Quant-based AMC Philosophy run by 'Pure Quants' Accurapcap runs quant-based strategies. We believe that a quant strategy is best run by 'pure quants', and this is what both Naresh Gupta & Raman Nagpal bring to the table. The founders are the core investment team, both Naresh and Raman come with unparalleled educational & professional qualifications in the fields of computer science, big data analysis & machine learning. The core investment team has tested the strategy on their own money before opening up to public investments and they are one of the very few quant strategies with a 10-year track record.

Investment Philosophy

Accuracap PMS follows a pure quant-strategy, with algorithms that use Big Data and Behavioral Analysis for stock selection & portfolio construction. These algorithms have developed by renowned computer scientists (Naresh Gupta & Raman Nagpal), both of whom have considerable senior-mgmt level industry experience in the use of Artificial Intelligence, Big Data, and Computer Learning. The algorithm is driven by the principles of identifying quality businesses with a moat around their business model that is reasonably priced with an intent to hold for medium to long term. The algorithm helps the team evaluate and identify businesses objectively and scientifically. The PMS uses the same philosophy for an exit strategy. where it reviews the portfolio every quarter for possible deterioration in the business model, and exit any businesses that show clear signs of such deterioration. The Accuracap team believes this process helps them keep the emotions out of the investment process.  The Investment Team is also strongly aligned to investor returns and the strategy itself:

• Skin-in-the-game with more than 50% of the total corpus that of the promoters
• Fee structure: no arbitrary hurdle rates as performance benchmarked against appropriate indices and profit-sharing only on the alpha generated relative to the index

ALGORITHM

Accuracap team claims that their unique ranking algorithm conducts extensive “Spatio-temporal” analysis of every business. They compare the business against every other business over space and time. This initial process of the filter helps them narrow the investment universe to some high-quality businesses. The algorithm then uses “Pendulum Hypothesis”, where they buy these businesses at reasonable valuations. The algorithm follows equi-weight portfolio strategy. In essence, the algorithm that the Accuracap team has developed helps them hold on to winning ideas and weed out losers at regular intervals.  Accuracap's Edge Unlike most quant strategies, Accuracap’s algorithm is focused on the fundamentals of businesses with the ability to take advantage of market psychology. The strategy follows a risk-averse and conservative approach with no arbitrary weight calls on any sector or stock. This allows for investment decisions to be made with no emotions in the decision-making process. Suitable For Investor's seeking to leverage the latest computing technologies (Big Data, AI, Behavioural Analysis) for a quant-driven approach to investment management.