The PMS/AIF AMC Rating is derived on the basis of our analysis on 5 key qualitative parameters that we use to analyse the quality of a PMS/AIF Provider. These include an assessment of the size of the AMC, the pedigree of the AMC, the pedigree of the team, the value of the investment philosophy & the level of differentiation. These insights of our central research team are documented in the IME RMS, and can be accessed during a consultation call with an IME PMS specialist.
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
PMS & Listed Equity AIF Schemes
Returns as of 31-Jan-25
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Details shared above, are only a short-snapshot of the more detailed analysis that resides in IME’s Proprietary RMS (Research Management Solution).
The IME RMS is the first tool ever, to give investors direct access to the insights of the central research team. Investors gain direct access to our ratings, rating rationales & analysis across thousands of funds (MFs, PMSs, AIFs, Global funds), asset classes, categories & more.
Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.