Accuracap PMS
PMSIME's View on Accuracap PMS
AMC View
AccuraCap PMS is a unique quant-based PMS with a team of experienced founders and investors known for their expertise in technology and finance.
AMC Pedigree
AccuracapPMS has a strong pedigree with founders who are experienced in computer science, tested their strategy with their own money before opening to public investments, and have a 10-year track record in quant strategies.
Team Pedigree
Accuracap was founded by 2 seasoned data scientists - Naresh Chand Gupta (core-promoter) & Raman Nagpal - both of whom are highly qualified in computer science, big data analysis, and machine learning, making them ideal candidates for running a quant strategy due to their expertise in these areas. After a strong tenure, Raman Nagpal recently left Accuracap, to focus on AltaAcura (a long-short AIF with a similar AI-ML quant focus). While this is an important departure, since Naresh was the more senior & original founder, and with the algorithims having stablised & proven themselves over time - we make a note of the churn but do not downgrade our team rating.
Investment Philosophy
Accuracap's quant-based investment process focuses on 3 stages - (1) Data clean up from Reported Earnings (2) Analysis & Ranking of the Universe based on AI Based spatio-temporal rankings based on an algorithm that uses extensive data points (3) Portfolio construction on the basis of the ranked universe. A quant strategy's effectiveness is determined by its real-market performance, not its philosophy. With a proven track record of over 10 years, the algorithm seems to consistently perform very well in the small-cap space (where PicoPower is amongst the most consistent smallcap funds), but performance in large-caps has not been as strong.
AMC Background
AccuraCap is a differentiated quant-focused PMS that uses Big Data and Behavioural Analysis to drive its investment strategies. Established in 2009 by two computer scientists to manage their personal capital (and expanded to public money in 2011), AccuraCap is among the few pure-play quant PMS providers in India. The firm is led by its founders, Naresh Gupta, who bring deep expertise in computer science, big data analytics, and machine learning.
The strategy was tested on the founders’ own capital prior to being offered to investors and has built a track record of over a decade. This long operating history, combined with strong founder alignment and technical pedigree, distinguishes AccuraCap within the domestic quant PMS space.
Investment Philosophy
AccuraCap PMS follows a pure quant strategy, where proprietary algorithms driven by Big Data and Behavioural Analysis are used for stock selection and portfolio construction. These algorithms were developed by the founding team, both of whom have senior management-level experience in Artificial Intelligence, Big Data, and computational technologies.
The algorithm is designed to identify quality businesses with durable moats that are available at reasonable valuations, with an intent to hold investments over the medium to long term. The same philosophy governs exits, with the portfolio reviewed quarterly for any deterioration in business fundamentals, prompting exits where required. This process is designed to minimise emotional bias in investment decisions.
The investment team is strongly aligned with investor outcomes:
- Skin in the game: More than 50% of the total corpus is invested by the promoters.
- Fee structure: No arbitrary hurdle rates; performance is benchmarked against relevant indices, with profit-sharing only on alpha generated over the benchmark.
Algorithm
AccuraCap’s proprietary ranking algorithm conducts extensive spatio-temporal analysis of businesses, comparing each company across peers over time. This process helps narrow the investment universe to a subset of high-quality businesses. The algorithm then applies the “Pendulum Hypothesis,” investing in these businesses when valuations are reasonable. The portfolio follows an equal-weighted construction approach, allowing the system to systematically retain winning positions and eliminate underperformers at regular intervals.
AccuraCap’s Edge
Unlike many quant strategies, AccuraCap’s approach remains fundamentally oriented, while also exploiting market psychology. The strategy is risk-averse and conservative, with no arbitrary sector or stock weightings, enabling disciplined and emotion-free decision-making.
Suitable For
Investors seeking to leverage advanced computing technologies such as Big Data, Artificial Intelligence, and Behavioural Analysis through a quant-driven investment management approach.
Investment team
Naresh Chand Gupta | 5-star rated FM
Co-founder & CEO | 36 yrs Experience | 10 yrs at current firm
Past Experience: Adobe India (MD & CEO), LNK Corp (Director-Artificial Intelligence)
Naresh is a computer scientist, researcher and corporate executive with impressive technology credentials. As CEO of Adobe India, Naresh oversaw 3500+ engineers and was responsible for over 40% of Adobe's global R&D, including the grant of hundreds of patents. Naresh is the author of several seminal scientific papers in the area of Artificial Intelligence, Pattern Recognition, and Computer Vision and holds seven Individual U.S. Patents. He left Adobe to start Accuracap PMS in 2015, in order to use his technical expertise in algo-based quant investing.
Recommended Funds
Accuracap Alpha10
Accuracap PicoPower
Experience the benefits of working with a 'research-first' investments firm
Free 30-Day Trial
Get complimentary access to the revolutionary IME RMS (direct access to IME's central team insights across 1000's of MFs, PMSs, AIFs & Global funds - a first in the industry).
Additionally, a dedicated private banker will help build your financial plan, investment mandate & undertake a comprehensive portfolio review for free.
