Bay Capital PMS
PMSIME's View on Bay Capital PMS
AMC View
While Bay Capital has a lot of ingredients that can lead to it building a strong domestic alternatives business, we would wait for the domestic business to mature & scale a bit more prior to more actively recommending Bay Capital Funds.
AMC Pedigree
Founded in 2006, Bay Capital Investment Advisors has maintained a single-minded conviction in India’s growth story. Bay Capital does have reasonable pedigree, driven by a strong investments team, a long-term track record and a defined investment philosophy. However, this has largely been on the back of their managing FII funds, and their domestic PMS-AIF business is still relatively nascent.
Team Pedigree
Bay Capital PMS is overseen by the experienced and skilled investment team, with both Nikunj and Keyur coming with over 2 decades of investments experience each at pedigreed investment firms. Nikunj Doshi, Managing Partner and Principal Officer & CIO for PMS, leads the investment strategy with over 34 years of experience in equity research and fund management. The core Bay Capital team manages investments for both their FII & domestic AMC businesses.
Investment Philosophy
Bay Capital follows a long-only, buy-and-hold strategy that focuses on Indian equities. They maintain a concentrated portfolio of 15-20 businesses that can generate high returns on capital without leverage. Investments are selected based on strict bottom-up criteria emphasizing quality, growth, value, and managerial integrity.
AMC History
Bay Capital, an independent investment firm established in 2006, was founded with a strong conviction in the India growth story and a focus on equity markets. While it has built a solid pedigree with a strong investment team, a long-term track record, and a defined investment philosophy, its expertise has primarily been in managing FII funds, with its domestic PMS-AIF business still in its early stages
Investment Philosophy
Bay Capital follows a long-only, buy-and-hold strategy that focuses on Indian equities. They maintain a concentrated portfolio of 15-20 businesses that can generate high returns on capital without leverage. Investments are selected based on strict bottom-up criteria emphasizing quality, growth, value, and managerial integrity.
Core Investment Approach
Business Owner Mindset:
- Invests in 20-30 high-quality franchises with strong corporate governance and high Return on Capital Employed (RoCE).
- Prefers asset-light businesses that reinvest cash flows at high returns.
Strict Stock Selection Process:
- Screens 1,000+ companies, filtering down to high-conviction, long-term winners.
- Key criteria: ROCE > 20%, scalable business model, strong balance sheet, and fair valuations.
- Avoids commodities, real estate, infrastructure, and capital-intensive businesses.
Sector Preferences:
- Preferred Sectors: Consumer, Consumer Tech, Financials, Technology, Pharma, Outsourcing (Manufacturing & Logistics).
- Avoided Sectors: Cyclicals, heavily regulated industries, and government-dependent businesses.
Long-Term, Low-Churn Strategy:
- Typical holding period of 8-10 years.
- Focus on compounding growth rather than frequent trading.
Investment team
Nikunj Doshi | 4-star rated FM
Managing Partner | 34 yrs Experience | 18 yrs at current firm
Past Experience: Kotak Mahindra AMC (SVP)
With over 30 years of experience in Fund Management and Equity Research, Nikunj brings a profound understanding of the Indian economy and businesses. Formerly associated with Kotak Mahindra AMC, he managed funds with a combined AUM exceeding USD 500Mn. Before Kotak, Nikunj served as the Head of Research at Refco-Sify Securities & Ventura Securities. He holds an Electronics Engineering degree from MS University of Baroda and a post-graduate degree in Master of Management Studies (MMS) from Mumbai University.
Keyur Majmudar | 4-star rated FM
Managing Partner | 29 yrs Experience | 16 yrs at current firm
Past Experience: Kotak Securities (SVP), Kotak Mahindra UK (VP), Oxford International Finance (AVP)
Keyur Majmudar comes with 27 years of financial expertise in Investment Banking, Equity Advisory, and Fund Management, previously served as EVP at Kotak Securities. Notably, he conceptualized and developed Kotak's non-discretionary portfolio management business. During his tenure with Kotak Mahindra UK in London as SVP, he contributed to building the offshore asset management business. Keyur was also a part of the Equity Capital Markets Group at Lazard Credit Capital in Mumbai. He holds a bachelor's degree from Mumbai University and a Master's in Management from Boston University.
