Sundaram Alternates PMS
PMSIME's View on Sundaram Alternates PMS
AMC View
Sundaram Alternates PMS is a mature provider specializing in small- and mid-cap strategies, offering differentiation compared to larger AMC-promoted PMS firms. However, like many MF-promoted PMSs, it faces structural limitations, and recent churn in the investment team raises additional concerns. While its pedigree and past performance are notable, we currently do not recommend the PMS.
AMC Pedigree
Sundaram is a mid-sized AMC specializing in small and mid-cap investments, particularly for South India-based businesses.
Team Pedigree
Madanagopal, who had been with Sundaram AMC for seven years and played a key role in building its PMS division since 2018, has recently exited the firm. A replacement has not yet been identified, which raises concerns given our earlier view that investment team churn is a recurring risk at MF-driven PMS platforms, particularly where fund managers do not hold significant equity ownership.
Investment Philosophy
Investment philosophy is not clearly defined at the PMS level, but at the portfolio level, strategies are well-defined and strictly followed compared to other AMC peer PMSs.
AMC Background
Sundaram Alternates PMS is part of the Sundaram AMC (a mid-sized mutual fund house) and has been in existence for over 2 decades (commenced operations in 1996). While it is part of a smaller AMC than peers (like ICICI, Birla and Axis), Sundaram is known to specialise in small and mid-cap stock picks (especially for South Indian businesses), which provides a solid foundation to build an alternates platform. Mature but suffers from typical AMC-driven PMS provider issues Investment team churn (Madanagopal has only been with the PMS for 2 years) is a typical issue with AMC PMS's where the main fund manager does not have a substantial equity stake. PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies are a few issues with AMC-driven PMS provider.Investment Philosophy
Sundaram Alternates PMS does not have a clearly articulated investment philosophy, but they are known for their expertise in identifying attractive investment opportunities in the small & mid-cap space. Specialist in Small and Mid-caps Known for their network especially in South India, Sundaram has carved out a niche for themselves in this regard. Suitable For Investor's seeking to invest with an established investment manager, that has the flexibility to deliver returns across a wide range of market conditions.Investment team
Karthik Athreya | 3-star rated FM
FM (Alternatives) | 27 yrs Experience
Past Experience: Altico Capital, Clearwater Capital, Rabo, Arthur Andersson, PWC, Yes Bank
Karthik Athreya is in charge of the Alternative Financing strategy at Sundaram AMC. He has almost 22 years of expertise in corporate finance, investment banking, and principal investing. Prior to this, He established Altico Capital and oversaw Clearwater Capital’s India division. He worked at Rabo, Arthur Andersson, and PWC before becoming a founding employee of Yes Bank.
