Solidarity PMS
PMSIME's View on Solidarity PMS
AMC View
Solidarity Investment Managers is a boutique PMS founded by Manish Gupta (ex-BCG, IIM-A), supported by a stable team of partners and analysts. The firm follows a clearly defined investment philosophy focused on long-term compounding through high-quality businesses. However, its deliberate avoidance of short-term tactical bets or cyclical trades may lead to periods of relative underperformance in momentum-driven markets. As a result, the strategy is better suited for patient investors with a multi-year horizon, rather than those closely tracking short-term performance.
AMC Pedigree
Solidarity PMS is managed by a seasoned PE professional and founder Manish Gupta, who brings strong stock-picking skills to the fund.
Team Pedigree
Manish Gupta, the founder and CIO, leads the investment decisions with a background in private equity and corporate strategy. The senior team outside of Manish — including Manjeet Buaria and Anirudh Shetty — does not have prior fund management experience before joining Solidarity, and does not provide a strong second-in-line support currently. Manish's experience in listed equities is still developing, but the concept of applying private equity investment rigor to stock selection is appealing. It follows a team-based ownership model, with 25% of profits shared internally.
Investment Philosophy
Solidarity PMS philosophy emphasizes investing in compounding stories with clear fundamental parameters, supported by Manish's PE background in long-term growth opportunities. The strategy is bottom-up, long-term, and concentrated. It aims for 15%+ IRR post-fees and 1.5% alpha over BSE 500 TRI on a rolling 5-year basis. The fund avoids deep cyclicals, poor promoters, and structurally weak business models. Position sizing is guided by portfolio role—growth, longevity, or asymmetric bets. It avoids short-termism, style drift, and excessive product proliferation.
AMC Background
Solidarity PMS was founded in 2014 by Manish Gupta, a seasoned private equity professional who previously managed private equity investments for Rakesh Jhunjhunwala and has a strong background in corporate strategy from his stints at BCG and Honeywell. Solidarity brings a private equity mindset to listed equity investing, with Manish Gupta serving as Founder and CIO and retaining full control over investment decisions. While his experience in private equity and corporate strategy is deep, the listed equity track record of the PMS remains relatively nascent.
Investment Philosophy
Solidarity’s investment philosophy is guided by a simple but rigorous question: “Is this a company we would like to own as long-term business owners?” The strategy seeks to identify compounding businesses with predictable growth, improving competitive advantages, and disciplined management teams capable of deploying capital at attractive returns over long periods.
Core Philosophy Pillars
- Broadly Predictable Growth: Focus on companies operating in large addressable markets with structural industry tailwinds that support long-term earnings visibility.
- Improving Competitive Edge: Preference for favourable industry structures, sector or niche leadership, expanding moats, and the ability to deploy incremental capital at ROEs exceeding 15%.
- Disciplined Management: Emphasis on focused business models, prudent leverage, disciplined capital allocation, and management teams that continuously learn and adapt.
Valuation sensitivity is explicitly linked to the company’s stage in its growth lifecycle, with greater valuation discipline applied as businesses mature. Solidarity does not follow model portfolios and invests based on the best opportunities available at prevailing valuations. The strategy also avoids making cash calls driven by macro events, instead remaining anchored to bottom-up fundamentals.
Portfolio Construction
The portfolio is constructed using a private equity-style classification framework, with capital allocated based on leadership position, growth potential, and risk-reward asymmetry.
- Clear Leaders (40–50% allocation): Market leaders in growing industries with dominant profit pool share, robust business models, and strong balance sheets, targeting ~15–18% IRR.
- Emerging Leaders (40–50% allocation): Businesses on the path to leadership, often within defined niches, with higher growth potential and IRR expectations of 18%+.
- Special Situations (~10% allocation): High-quality businesses undergoing temporary uncertainty, where valuation dislocation creates the potential for ~25% IRR.
- Concentration: Portfolio typically holds 15–20 companies, with position sizes ranging from 3% to 15%.
- Risk Management: Strong avoidance of poor governance and excessive leverage, with the belief that volatility itself is not risk.
- Sell Discipline: Positions are exited when valuations become euphoric or when new facts materially alter the original investment thesis.
Suitable For
Investors seeking a private equity-style approach applied to listed equities, with a focus on long-term compounding businesses, disciplined capital allocation, and the ability to tolerate periods of volatility in pursuit of superior long-term returns.
Investment team
Manish Gupta | 4-star rated FM
Founder & CIO | 29 yrs Experience | 12 yrs at current firm
Past Experience: RARE Enterprises (MD-Private Equity), Honeywell (Director-Strategy), BCG (Strategy Consultant)
Prior to founding Solidarity in 2014, Manish worked with Rakesh Jhunjhunwala for 8 years as the Managing Director for Private Equity Investments at Rare Enterprises. His prior experience includes 7 years of strategy consulting with the Boston Consulting Group.
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