Aequitas PMS
PMSIME's View on Aequitas PMS
AMC View
Aequitas is a strong AMC for aggressive investors due to its founder-fund manager, proven track record in small-cap investments, and clear focus. However, the high minimum investment requirement may be a barrier for some investors.
AMC Pedigree
Aequitas has built strong AMC credentials through Siddhartha Bhaiya's successful small-cap picks, leading to the company being recognized as a specialist in small-cap investments.
Team Pedigree
Aequitas's team is known for founder Siddhartha Bhaiya's successful track record in selecting small-cap stocks.
Investment Philosophy
Aequitas focuses on delivering high returns by investing in small-cap undiscovered companies with potential for significant growth. They create customized portfolios for each client, rather than using a model portfolio approach. This strategy involves investing in companies with high growth potential, a contrarian approach, and value stocks with re-rating potential.
AMC Background
The combination of a founder-led investment approach, a proven long-term track record, and a clear specialisation in identifying small-cap winners makes Aequitas a strong AMC for more aggressive investors. The firm has built its credentials on the back of sustained outperformance driven by Siddhartha Bhaiya’s small-cap stock selection, allowing the AMC to scale meaningfully and establish itself as a specialist in the small-cap segment.
Investment Philosophy
Aequitas’s investment philosophy is centred on delivering outsized returns by investing in undiscovered small-cap companies. The strategy does not follow a model portfolio approach; instead, portfolios are customised for individual clients. Multi-bagger identification is driven by a combination of high growth potential, contrarian positioning, and value characteristics that enable stock re-rating over a 3–5 year investment horizon. Portfolios are typically constructed with around 20 stocks, balanced across sectors and supported by clear re-rating catalysts.
Multibagger Approach
- Growth: Companies with above-average growth potential over the foreseeable future.
- Contrarian: Focus on undiscovered opportunities while avoiding crowded or popular names.
- Value: Businesses with clear potential for valuation re-rating.
The combination of earnings growth and P/E re-rating is central to identifying multi-bagger opportunities.
Selection Criteria
- Industry Leaders: Companies with sustainable competitive advantages within their industries.
- Management Quality: Strong corporate governance and consistent long-term execution.
- Valuations: Portfolio valuation maintained below broader market P/E levels.
- Creeping Acquisitions / Buybacks: Preference for companies with promoter buybacks or creeping acquisitions, a common trait among past successful investments.
- Low Debt & Cash Flows: Focus on low leverage or net-cash balance sheets with consistent cash generation.
Suitable For
- High-risk, aggressive investors seeking outsized returns through concentrated exposure to small-cap and emerging businesses.
- Investors comfortable with higher volatility, drawdowns, and longer holding periods typically associated with small-cap investing.
- Investors meeting the minimum investment ticket size requirements, making the strategy more suitable for higher net-worth individuals.
Investment team
Siddhartha Bhaiya | 5-star rated FM
MD & Fund Manager | 21 yrs Experience | 13 yrs at current firm
Past Experience: Fund Manager (Nippon India MF)
Siddhartha a qualified Chartered Accountant is the driving force behind Aequitas & has over 13 years of experience into Equity research and Equity Fund Management. Siddhartha started his career as a Research Analyst with Sushil Finance and has worked with Strat cap Securities. Principal PNB AMC & Reliance Capital Asset Management (RCAM). Siddhartha has developed his fund management credentials at Aequitas where he has demonstrated strong longer-term outperformance based on his small-cap picks.
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