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True Beacon AIF

PMS Rating

IME PMS Rating

3 of 5 stars

Not Recommending due to lack of long term credentials: There are clear points of appeal for what True Beacon is trying to build. A very strong first year, differentiated strategies and a disruptive pricing model are all positives. However, they are still a very young AMC and a lack of publicly available longer-term performance of the founders long-short strategies do not allow for a more aggressive 5-star rating.

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 (161cr) | Promoter Category ()

AMC Background

True Beacon was established in early 2019 by Nikhil Kamath. Nikhil Kamath is very well known for his Bangalore-based unicorn Zerodha, India’s largest stockbroking platform. The AMC is built on client alignment through a zero-standing fee model. The AMC serves UHNI and HNIs. 

Investment Philosophy

True Beacon takes a long-term, defensive approach. 

The portfolio is drive by long-only allocation (60%) and long-short allocation (40%).

Long Only Portfolio (Top-down and bottom-up approach)

  • Exclusively large-cap companies: invest in 20-25 Nifty-50 companies with a maximum exposure of 10%
  • Concentration: 7-10 stocks represent 50% of the weight

Long-Short Portfolio

  • Short side: focus trading futures and options on major indices and individual stocks — to provide a natural hedge for the long-only portfolio
  • Sector and market-cap agnostic, driven by fundamental sector and/or market momentum, supplemented by proprietary derivatives framework

Inv Team

Investment Team

Nikhil Kamath | 4-star rated FM

CIO and Co-founder | 20 yrs Experience | 5 yrs at current firm

Past Experience: Co-founder, Zerodha

Nikhil Kamath is the CIO and Co-founder of True Beacon. He is known for the unicorn broking firm Zerodha that he co-founded along with his brother in 2010. He focused on developing alternative investment strategies and co-founded Kamath Associates at eh age of 19 to manage HNW individuals. Nikhil now focuses full-time on managing the fund.

Nithin Kamath | 4-star rated FM

Co-founder | 23 yrs Experience | 5 yrs at current firm

Past Experience: CEO, Rainmatter; Co-founder, Zerodha; Partner, Kamath Associates

Nithin Kamath is known for the unicorn Zerodha, India’s largest brokerage firm. He was a prop trader, advisor, and sub-broker before co-founding Zerodha. He also runs Rainmatter, a VC Fund, and incubator, partnering with innovative start-ups that are helping grow the Indian capital market ecosystems.

Richard Pattle LVO | 3-star rated FM

CEO and Co-Founder | 35 yrs Experience | 5 yrs at current firm

Past Experience: Senior Advisor, Zerodha; VC Private Bank, Standard Chartered Bank; Master of the Household of Their Royal Highnesses The Prince of Wales and the Duchess of Cornwall; Wing Commander, Battlefield Helicopter Pilot (Royal Air Force)

Richard spent 18 years as a battlefield helicopter pilot in the British Royal Air Force. He later became Master of the House of Their Royal Highnesses The Prince of Wales and The Duchess of Cornwall. From 2014, he was VC of Standard Chartered Private Bank globally, covering UHNI Families for 4 years.

PMS/AIF Schemes

PMS & Listed Equity AIF Schemes

No items found

Returns as of 28-Feb-24.

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