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Moat PMS

PMS Rating

IME PMS Rating

AMC does not meet our selection criteria at this time

Not a Recommended AMC: The 1-star rating of the AMC is primarily driven by the AMC still being sub-scale. Since the firm is still sub-scale, we have not done additional evaluations with regards the AMC Pedigree, Investment Philosophy, Team & Performance.

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.

PMS Background

Discretionary AUM (71cr) | Promoter Category ()

PMS Background

Moat PMS was founded in 2012 by Suraj Nair and is a Cochin Based PMS provider.
 
 
 

PMS Investment Philosophy

Moat focuses on identifying superior growth companies that have the ability to deliver regularly. They aim to find quality business, management and value. They are fixated on picking premium quality businesses while keeping client’s capital safe. They identify companies which can sustain a significantly higher ROCE compared to Cost of Capital in long-run, which would free up cash flow for the business. They look for smaller players in the industry that have the ability to become bigger in the future. They especially target large cap companies, market leader or near market leaders if they are capable of further expansion.

Investment Process

Moats approach constitutes 3 major factors looked at while selecting premium quality businesses: 

  • Clean accounting practices: Identifying companies by analysing them based on certain ratios on all companies with market cap> Rs.500 crores while also looking at preceding 5 years if the company’s consolidated financials
  • Capital allocation: Identifying companies that would have a higher ROCE when compared to Cost of Capital for non financial companies As well as low debt to Equity ratio. To identify financial companies look for those that have a higher ROE when compared to Cost of Equity. Also identify for the last 10-5 years company maintenance capex trend. 
  • Moat (Entry Barrier): Identify businesses with strong moat by investigating brands, regulatory licenses, patents & copyrights, cost advantage, switching costs, network effect, large distribution network, high capital investment 

Portfolio Construction 

Portfolio will hold a max of 20-25 stocks and min of 8 stocks

  • Core Portfolio (80-85%): will consist of high conviction stocks 
  • Special Situation (10-15%)
  • Cash and Other Liquid Assets (5-10%)

RISK MANAGEMENT

  • Diversified: 60-65% invested in top 10 picks
  • Churn rate: 8-10%
  • Avoid businesses: rendered obsolete by internal & external factors

Inv Team

Investment Team

Suraj Nair | 2-star rated FM

CIO | 12 yrs at current firm

Suraj Nair is an ex-IT professional, who shifted towards equity investing in 2012.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

No items found

Returns as of 31-July-24.

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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.

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