AMC Background

Equitree PMS established as a boutique firm specialising in small and micro-cap investing. The firm is positioned as a “private equity approach to public markets,” reflecting its intent to apply PE-style discipline, patience, and depth of research within the listed equity universe.

The firm is co-founded by Pawan Bharaddia, Chartered Accountant and Chief Investment Officer, and Ssusneet Kabra, Chartered Accountant and Chief Executive Officer. Pawan Bharaddia brings over two decades of experience across private equity and public markets, including senior roles with global banks and PE platforms, and has developed a track record of identifying early-stage opportunities in India’s small and micro-cap space. Susneet Kabra complements this with a background in entrepreneurship, financial advisory, and investor relationships, providing balance between investment execution and institutional development. Since inception, Equitree has consciously remained a boutique, prioritising investment performance, process integrity, and scalability discipline over rapid asset accumulation.

Investment Philosophy

Equitree’s investment philosophy is centred on identifying and owning high-quality emerging businesses at an early stage of their growth trajectory, where valuation inefficiencies are pronounced and long-term compounding potential is underappreciated. The firm seeks to combine deep value investing with high-growth outcomes by focusing on companies that can deliver 25–30% earnings growth over extended periods, while being available at valuations that provide a meaningful margin of safety. Investing is approached with a buy-and-hold mindset, typically with a three- to five-year horizon, allowing both business fundamentals and valuation re-rating to play out.

The philosophy explicitly borrows from private equity principles - early identification, deep due diligence, high conviction, and negligible churn—while retaining the liquidity advantages of public markets. Equitree believes that superior outcomes in small-cap investing come not from timing markets, but from disciplined accumulation of quality businesses during periods of volatility, followed by patient ownership through cycles.

Strategic Business Focus

Equitree invests only in businesses it understands deeply, with a strong emphasis on strategic clarity, scalability, and capacity for sustained earnings growth. Preference is given to companies that are leaders or emerging leaders within niche segments, possess clear competitive advantages, and operate in industries with structural tailwinds. Valuation discipline is a central pillar of the philosophy, with investments typically made at discounts to historical valuation bands or intrinsic value estimates, and with explicit focus on downside protection rather than optimistic forward projections.

Management Quality and Governance Emphasis

Management quality is treated as a non-negotiable variable in Equitree’s framework. The firm prefers family-run or promoter-led businesses with long operating histories, strong capital allocation discipline, and demonstrated integrity. Regular management interaction, ongoing governance monitoring, and forensic checks are integral to the investment process. Equitree believes that long-term compounding in small caps is inseparable from management behaviour, particularly during periods of stress or rapid growth.

Portfolio Construction

Portfolio construction is intentionally concentrated, typically comprising 12–15 stocks, with position sizes reflecting conviction and risk assessment. Initial positions are built gradually, often starting at 2–3% and scaled up as business execution and valuation comfort improve. The firm maintains an active watchlist and is willing to hold cash when valuations are unattractive, viewing cash as a strategic asset rather than a drag.