Stallion PMS
PMSIME's View on Stallion PMS
AMC View
Stallion offers a higher-risk, higher-churn, momentum-tilted investment strategy that caters well to investors seeking growth through trend-following approaches. While relatively new as an AMC, Stallion has carved out a strong presence in the PMS space through consistent outperformance within its chosen style and a focused commitment to identifying emerging and proven market leaders.
AMC Pedigree
Stallion PMS is a young firm with a successful fund since inception, known for their defined investment philosophy in momentum investing within a niche market. The firm evolved from a research analyst outfit into a SEBI-registered PMS in 2018. Consistent outperformance on their strategy has helped build their pedigree as an AMC.
Team Pedigree
The investment team is led by Amit Jeswani, Founder and CIO, who has nearly nine years of experience in formal, regulated roles, including over six years as a hands-on PMS fund manager. A CFA and CMT charterholder, Amit brings a blend of fundamental and technical insights to Stallion’s momentum-tilted strategy. He is supported by Juhi Shah and Arpit Shah, who contribute to research and execution, forming a compact yet focused team known for agility, high conviction, and trend-based stock selection. Despite not having a prior public strong track record, Amit has consistently outperformed at Stallion for the past 5 years.
Investment Philosophy
Fund follows a trend-following, growth investing approach with a strong emphasis on identifying emerging and proven monopolies. The strategy focuses on four key attributes—market leadership, management quality, size of opportunity, and margin of safety. We appreciate Stallion's investment philosophy of focusing on high-quality businesses with current market momentum, which can lead to higher churn and is considered higher-risk, making it more suitable for investors with a higher risk appetite.
PMS Background
Stallion PMS was founded in 2018 by Amit Jeswani, with the objective of extending Stallion’s strengths as a research and broking firm into discretionary portfolio management. While the PMS is still relatively young, it has delivered strong performance since inception. However, the fund manager is yet to establish a full market-cycle track record, making the long-term sustainability of returns difficult to assess.
PMS Investment Philosophy
Balancing bull and bear markets through sector rotation
The strategy dynamically allocates capital across sectors depending on market conditions. Financials and Consumer Tech are emphasised during bull markets to drive alpha, while Consumer and Pharma exposures are increased during bear markets to provide downside protection.
Focus on two types of businesses
- Asset-light businesses that do not require incremental capital to grow
- Businesses that can reinvest free cash flows at high ROIC with strong competitive advantages
Core sector focus: Financials, Consumer Tech, Consumer and Pharma
Investment Approach
The portfolio is constructed using a blend of three styles to manage volatility across market cycles.
- Core Portfolio (40–60%): Performs well in bear markets but may underperform in strong bull phases
- Trend Portfolio (40–50%): Performs well in bull markets but can see sharper drawdowns during corrections
- Special Situations (~10%): Opportunistic allocation depending on availability of asymmetric setups
Core Portfolio Characteristics
- Market leadership
- High-quality management
- Large market opportunity allowing 4–5x growth without intense competition
- Margin of safety driven by capital allocation and distribution strength rather than valuation multiples
Trend Portfolio Characteristics
- Buy-and-rotate strategy focused on leaders in each bull market
- Preference for sectors with sustainable growth visibility of >20% over 3–5 years
- Focus on stocks making new 52-week highs rather than mean reversion plays
- Avoids assuming that previous bull-market leaders will lead the next cycle
Special Situations
- Promoter change (Indian promoter to MNC)
- Large regulatory changes
- Demerger of high-quality businesses
- Valuation and earnings re-rating opportunities
- Target upside of 3–5x over 3–5 years with limited downside risk
Businesses Avoided
- Non-recurring revenue models or government/project-driven businesses
- Commodity-like businesses with deteriorating economics at scale
- Businesses growing below cost of capital
- Land-bank plays and valuation arbitrage
- Poor promoter quality
Exit from Core Holdings
- Change in expected growth rate
- Deterioration in incremental ROCE
- Weakening competitive advantage period
- Cost of capital exceeding expected returns
Investment team
Amit Jeswani | 3-star rated FM
Founder & CIO | 15 yrs Experience | 7 yrs at current firm
Amit Jeswani is a CFA Charter holder and CMT. He has over 14 years of in capital markets. He is an active member of the Association of Technical Market Analyst and Indian Association of Investment Professionals.
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Stallion Core
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