Right Horizons PMS
PMSIME's View on Right Horizons PMS
AMC View
Right Horizons has achieved notable growth and scale, and can now be considered; however, we remain cautious given the high volatility in its annual performance.
AMC Pedigree
Right Horizons has grown and improved its strategies, but it is not as reputable as other established PMS firms.
Team Pedigree
Anil Rego has gained investment experience at Right Horizons despite lacking prior experience, and the team has been bolstered by the addition of Piyush Sharma, an experienced investments professional.
Investment Philosophy
Right Horizons PMS does not have a PMS-level investment philosophy; strategies are defined at a scheme level.
PMS Background
Right Horizons PMS started in 2015 is the asset management arm of the Right Horizons Wealth Management group (a bangalore based investment advisor with 1000cr+ in assets). Fund Management Team has an experience of more than 40 years in investment and research.
High Volatility Right Horizon's annual performance has shown high volatility. Despite their growth and scale, they are yet to build their credentials in the PMS space.PMS Investment Philosophy
Right Horizons PMS aims at delivering superior Risk-Adjusted Return by following a robust risk management methodology, using a structured Investment Process as well as using an in-depth Fundamental and Quantitative analysis.
Stock selection using bottom-up Approach based on: 1) Market Size, 2) Sustainable Growth, 3) Promoters Stake in business, and 4) Value Generation factors
Investment Process
- RH Screener: RH screen from a universe of 1300 companies based on ROE, ROCE, PAT Growth, Promoter holding, etc.
- RH Scorecard: Their Stock Evaluation Framework is built based on the emphasis on Valuation and Return Ratios, Forensic Filters and Selected line items from Financial Statements.
- RH Risk Radar: Their Risk Evaluation Criteria looks at regulatory changes to be able to capture business risk, limit sector and stock level exposure and re-balance portfolio.
- RH Pendulum: Stock re-balancing framework giving focus on both fundamental levels and opportunistic technical levels.
Portfolio Construction
Core Portfolio: Capital Efficient high growth companies ~ 80% portfolio allocation
Satellite Portfolio: Companies with turnaround stories/ Contrarian bets having higher margin of safety and greater risk-reward potential ~ 20% portfolio allocation
Investment team
Anil Rego | 3-star rated FM
Founder & CEO | 28 yrs Experience | 22 yrs at current firm
Past Experience: Manager - M&A and Business Planning (Wipro)
Anil Rego started his career with Wipro Technologies with roles in Business Planning and Mergers and Acquisitions. Later, in Oct 2003, he went on to start Right Horizons (with an initial focus on wealth management). Anil has also served as a member, Board of Governors, at IBSAF.
Piyush Sharma | 3-star rated FM
Portfolio Manager | 21 yrs Experience | 15 yrs at current firm
Past Experience: Co-Founder and Portfolio Manager (Metis Capital Management Ltd.), Principal (Contravest Associates), Senior Equity Analyst & VP (Longbow Research)
Prior to joining Right Horizon, Piyush Sharma's experience was as an international investor investing in India through listed equity-focused offshore and onshore structures. The experience runs across several industries in the USA and India, including Business Services, Auto & Auto parts, Consumer Products, Specialty Retail, Consumer Finance, and Special Situations.
