ValueQuest PMS

PMS Background

ValueQuest was co-founded by Ravi Dharamshi and Sameer Shah in 2010. Ravi Dharamshi comes with over 2 decades of experience, having worked at RARE Enterprises (research and private equity deals) prior to founding ValueQuest. Sameer Shah also comes with over 2 decades of experience, previously heading business development at FCH Centrum, BRICS Securities and Sharekhan.

ValueQuest has since scaled well, now driven by a strong team with 3 fund managers, 10 research analysts with domain expertise, 7 people in operations, and 2 business development personnel.

Strong Investment Team While fund managers retain complete discretion over their own strategies, the 3 fund managers operate as an informal Investment Committee with all investment ideas discussed amongst themselves. The core investment team is well-supported by a strong analyst team, comprising 5 senior analysts who in turn are supported by 5 associate analysts.

Investment Philosophy

FRAMEWORK

• Opportunity Size: driven by rich in possibilities, high earnings growth, longevity, predictability and scalability
• Competitive advantage: through networks, IP, regulation, brand, cost structure and switching cost
• Scalability & Sustainability: driven by replicability, market adjacencies, technology adoption, and reach
• Management: look for competent management and efficient capital allocators, with aligned interests 
• Asymmetric Risk-return: through operating leverage, S-curve, and numbers vs narrative

Concentrated Approach ValueQuest believes on focused investments in their top-ideas, with portfolios typically comprising between 8-12 companies. The focus is on investing in either leaders or challenger companies that are in sectors with a clear potential to scale, while ensuring a high level of corporate governance. The focus in more on growth & quality over valuations.

Investment Process

• Top-down Approach: Supportive macros, improving competitive positioning and developing business tailwinds
• Bottom-up Approach: Proactive management, strong balance sheet, and attractive risk-return

FILTERS

• Universe: 500-600 companies based on quality filter through balance sheet strength, management capabilities and competitive positioning
• Focus Companies: 150-200 companies based on growth filter drive by industry tailwinds, increasing market share, improvement in P/L and balance sheet.
• Core: 30-50 companies with favourable risk-reward, perception with market and margin of safety

ValueQuest's research is driven by a rigorous focus on depth, quality, propreitary research, ground research, and differential insights over the breath, quantity, borrowed conviction, ticking boxes and desk research.

Filtering Universe approach followed by deep bottom-up research Filters are used to screen for ideas from amongst a larger universe. Once ideas are short-listed, there is a deep-dive into the company fundamentals with a strong focus on scuttlebutt & forensic accounting.