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 an aim of building on their strengths as a research & broking firm into an investment management business. Young AMC with short tenure Even though the AMC is still young they have had strong performance since inception, its fund manager is yet to build a longer term track record in order to judge its sustainabilityPMS Investment Philosophy
Balancing Bull market by investing in Financials & Consumer tech and during Bear market Consumer & pharma
Invest in 2 kinds of Business- Asset Light Business which don’t need Capital to Grow
- Companies that can reinvest all free cash flows at high ROIC with strong competitive advantages.
Investment Approach
They follow a combination of best of 3 Styles:- Core Stocks
- Trends
- Special Situation
- Core portfolio (40%-60%) works well in bear market but underperforms in bull market.
- Trend portfolio (40%-50%) work well in Bull Market but have larger Draw-downs in Bear markets.
- Special Situation (10%) only portfolio might have opportunities in sometime & be on cash in others. This combination is chosen not only to lower the portfolio volatility but will deliver decent returns.
- Market Leadership
- Management
- Market Opportunity- Invest in companies that address a market that is large enough to allow investments to grow 4-5x without needing to compete.
- Margin of Safety- Do not use PE Ratio's instead focus on Capital Allocation & Distribution
- Buy and rotate strategy
- find leaders in every bull market and stick to it
- Buy sectors with high expected sustainable growth of more than 20% for the next 3-5 years.
- previous bull market winners to not lead next bull market
- Would buy companies that make 52 weeks highs than buying new 52 week lows
- Businesses that don’t have recurring revenue or get revenues from govt/project business
- Commodity like businesses that get worse with size
- Businesses with a growth rate less than Cost of Capital
- Hold on to looser for a Long time.
- Commodities
- Land Bank Play
- Bad Promoter
- Valuation Arbitrage
- Government Businesses (B2G or G2B)
RISK MANAGEMENT
Exit from Core Stocks/ Sell- Change in Expected growth rate
- Incremental return of capital employed
- Competitive Advantage Period
- Cost of Capital
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.
