Sundaram Alternates PMS

PMS Rating

IME PMS Rating

3 of 5 stars

Not a top recommendation due to being an AMC-driven PMS: Sundaram Alternates PMS is a mature PMS provider and with a known specialisation in small-and-mid caps. While it is slightly more differentiated than some of its larger AMC-founded PMS peers, it does suffer from AMC-promoted PMS ailments (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), which is why we typically prefer owner-managed PMS providers instead. However, it does have its own positives- (a) long-track records of core portfolios -- each of which has over a decade of performance (b) differentiation in terms of mid-and-small caps (c) more PMS-like strategies - higher concentrations & differentiated portfolios.

The PMS/AIF AMC Rating is derived on the basis of our analysis on 5 key qualitative parameters that we use to analyse the quality of a PMS/AIF Provider. These include an assessment of the size of the AMC, the pedigree of the AMC, the pedigree of the team, the value of the investment philosophy & the level of differentiation. These insights of our central research team are documented in the IME RMS, and can be accessed during a consultation call with an IME PMS specialist.

PMS Background

Discretionary AUM (1991cr) | Promoter Category ()

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.

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.

Inv Team

Investment Team

Madanagopal Ramu | 3-star rated FM

Fund Manager | 19 yrs Experience | 6 yrs at current firm

Past Experience: Centrum (Analyst), PFC (Project Finance)

Having joined Sundaram as a research analyst in 2010, Madangopal went on to become the Head of Research and co-manager of a number of the Sundaram AMC funds. He joined the PMS division in 2018.

Karthik Athreya | 4-star rated FM

FM | 26 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.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

Scheme Category Style 1 yr 3 yr 5 yr Since Inc
Sundaram Alternates Voyagers Flexi Cap GARP 27.4 14.4 19.6 19.2
Sundaram Alternates SISOP Large & Midcap GARP 25.6 13.7 17.6 17.3
Sundaram Alternates S.E.L.F Flexi Cap GARP 37.4 18.3 27 17.6
Sundaram Alternates Rising Star Small Cap GARP 26.8 21.2 16.1 14.7

Returns as of 28-Feb-24.

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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.