O3 Securities PMS
PMSIME's View on O3 Securities PMS
AMC View
BugleRock Capital (formerly o3 Securities) is a boutique wealth and asset management firm.
AMC Pedigree
BugleRock Capital is the rebranded and spun-off identity of the wealth and asset management division of o3 Securities. O3 is respected niche investment bank. BugleRock formally became independent in 2024, but it inherits its track record, leadership, and client base from its days as o3 Securities, dating back to 2007.
Team Pedigree
BugleRock Capital is led by a highly experienced team with deep roots in Indian public markets. At the helm is E. A. Sundaram, Executive Director and CIO – Public Markets, who brings over 34 years of investment experience across marquee institutions like SBI Mutual Fund, Zurich India, HDFC Mutual Fund, and PGIM India. Supporting him is Apurva Sharma, Fund Manager of the Core Value Strategy, who combines a CFA charter with an MBA and prior experience at Helios Capital, PGIM, Edelweiss, and ICICI Bank. Additionally, Himanshu Upadhyay and Priyank Chandra lead the Special Situations and Thematic portfolios respectively.
Investment Philosophy
BugleRock Capital follows a fundamentally driven, value-conscious investment approach focused on capital preservation and long-term wealth creation. Across strategies, the firm maintains a concentrated, high-conviction approach grounded in business quality and downside protection.
PMS Background
o3 Securities PMS is the PMS platform of o3 capital (a respected niche Bangalore based boutique investment bank). It is a relatively new PMS (strategies having been launched only in May-2019)
Nascent Stage PMS Provider with Strong Investment Professional While o3 capital is a respected niche investment bank, the PMS platform is still at a very nascent stage and yet to develop its credibility in the marketplace. o3 Capital has been able to recruit EA Sundaram, who is a seasoned fund manager (with prior experience as CIO of Pramerica AMC, HDFC AMC and Zurich AMC).PMS Investment Philosophy
o3 Securities PMS’s primary offering (o3 Core Value Strategy) uses a comprehensive framework to identify high-quality companies (superior return ratios, free cash flow record, quality management) at attractive valuations.
To prevent Capital loss follows the framework in investing in good quality businesses having good management at attractive valuations which in turns leads to above average returns.
Investment Process
- High Quality Business (Screening from an universe of 6000 stocks) defined by-- 15+ years of business operations; having revenues over INR5 Bn; consistent returns on capital employed of over 20%; also having a consistent positive free cash flow.
- Good Management (Investment universe of 200 companies) defined by-- companies having a good capital allocation history; history of good corporate governance; market share track record; expected earnings growth higher than the industry.
- Valuation (a portfolio is created with 20-25 stocks, with minimum of 75% of portfolio from above universe) defined by-- during a temporary distress or distant earnings triggers; current valuations is near historical lows; current valuation is less than future earnings growt; current valuation less than +1 SD time historical average.
Exit Strategy
- Assumption being with which the stock was bought in the first place is no longer valid
- Stock price goes well beyond what they think is worth
- When they spot a superior opportunity at the same perceived level of risk.
- When there is a redemption request
Risk Management
- A max of 10% in single stock
- A max of 30% in single sector
- A minimum of 4 sectors which are uncorrelated to one another
- No derivatives & leverage positions
- Average volumes of stock should support entire holding liquidation within a max of 5 trading sessions
Investment team
E. A. Sundaram | 4-star rated FM
ED & CIO, Public Markets | 36 yrs Experience | 7 yrs at current firm
Past Experience: ED & CIO Equities (PGIM India Asset Managers Pvt Ltd), Director - PMS Investments (PGIM India Asset Managers Pvt Ltd), Portfolio Manager (M3 Investment Managers Pvt Ltd), Senior Fund Manager (HDFC AMC), Fund Manager (Zurich AMC), Manager - Research (SBI Fund Management Ltd)
E. A. Sundaram comes with over 3 decades of work experience in public equities, fund management, in various formats including close and open-ended funds, family offices & portfolio management services.
Himanshu Upadhyay | 3-star rated FM
Portfolio Manager | 18 yrs Experience | 4 yrs at current firm
Past Experience: Senior Analyst (M3 Investment Pvt Ltd), Analyst (Max New York Life Insurance Co)
Himanshu Upadhyay comes with 11 years of experience in equity markets. He was previously with M3 Investment Managers and Max New York Life Insurance.
