Abakkus Diversified Alpha
Abakkus PMS | Equity | | PMSIME's View on Abakkus Diversified Alpha
Strategy
Benchmark Agnostic Strategy
Investment Fund
The lower rating of Abakkus Diversified Alpha relative to other Abakkus fund's are primarily linked to it being a newer fund, without a past track record. On it's own, we find the highly defined asset allocation strategy very well defined and we see clear merit in the same, and Abakkus Diversified Alpha does benefit from all the other positives of Abakkus. This is clearly a fund that can be considered by investors, open to investing in newer fund offerings.
Fund's Strategy View
Abakkus Diversified Alpha Fund provides a unique approach to portfolio construction in which they give exposure to all the market caps through pre-defined weightage per respective category (10 stocks each per market-cap bucket, with a total exposure of 40% to large-caps, 30% to mid-caps, 20% to small-caps, 10% to microcaps). This approach gives a good balance between volatility and alpha generation, with a disciplined portfolio construction approach that allows higher weights to lower-risk investments & ensure lower weights to higher-risk investments.
Fund Performance
We refrain from evaluating the fund since it is yet to mature (less than 5 years).
IME's View on Abakkus PMS
View on AMC
In a relatively short-time, Abakkus has scaled into one of the largest PMS-AIF firms in India on the back of the strong pedigree of its founder - Sunil Singhania - an industry veteran who was the former CIO of Nippon MF. The higher 5-star fund rating for a relatively newer fund, is driven by the very high pedigree of it's founder (Sunil Singhania), a strong investment team and a very clearly defined investment philosophy (driven by the MEETS framework) & research processes.
AMC's Pedigree
A combination of scale, a very pedigreed investment team, a very well defined investment philosophy and strong performance in its initial years, makes Abakkus a highly pedigreed AMC with strong long-term potential in the Indian Alternatives space.
AMC Team
Abakkus's core investment team, led by Sunil Singhania and Aman Chowhan of Reliance AMC, has over 5 decades of experience. The senior investments team, is well supported by a large research team comprising a mix of senior & junior research analysts.
Investment Philosophy
Abakkus follows a MEETS framework (Management, Earnings, Events, Timing, Structural) for investment evaluations, with quantified benchmarks for quality, growth, and valuations. This MEETS framework, is complemented by a 5D Investment Process (the defines the stock selection process starting from a larger universe to the coverage list & final portfolio companies), a 4C framework of what they avoid doing (chasing momentum, churn, copying & credit risks) and a strong risk-management framework. The investment philosophies & frameworks are amongst the most tightly defined in the industry.
Investment Strategy
Abakkus Diversified Alpha Approach follows a structured 40:30:20:10 allocation (balancing exposure across large, mid, small, and micro-cap stocks), combining fundamental research with tactical flexibility. By leveraging its MEETS framework and disciplined stock selection, the strategy aims to capture alpha across market cycles while maintaining risk-adjusted returns
Core Investment Approach
Multi-Cap Portfolio with a Disciplined Allocation Model:
- 40% Large Caps: Provides stability and liquidity.
- 30% Mid Caps: Captures strong growth potential.
- 20% Small Caps: Identifies emerging market leaders.
- 10% Micro Caps: Opportunistic bets with high alpha potential.
Fundamentally-Driven Stock Selection:
- Focuses on earnings growth, competitive advantage, and financial strength.
- Avoids companies with excessive debt, poor governance, or unsustainable business models.
- Identifies businesses with the potential to double earnings within four years.
MEETS Framework for Stock Evaluation:
- Management: Quality, track record, capital allocation.
- Earnings: Quality vs. reported numbers, cyclical vs. structural growth.
- Events/Trends: Disruptive themes, upcoming opportunities.
- Timing: Valuation discipline, entry-exit strategy.
- Structural Growth: Industry positioning and scalability.
Flexible, Yet Disciplined Investment Process:
- Patient, buy-and-hold philosophy, allowing businesses to realize value.
- Contrarian mindset, willing to enter under-researched sectors.
- Strict risk-reward assessment, ensuring that expected returns justify potential risks.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Abakkus Diversified Alpha | -5.9 | 7.8 | ||
| S&P BSE 500 | -6.6 | 9.1 | ||
| Alpha over Broad Mkt BM | 0.7 | -1.3 |
Performance as of: 30-Sep-25 | Inception Date: 06-Jan-24 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Sunil Singhania | 5-star rated FM
Founder | 31 yrs Experience | 8 yrs at current firm
Past Experience: CIO (Reliance Capital), Director - Research and Institutional Sales (Advani Share Brokers)
Sunil Singhania comes with ~3 decades of rich experience. He was a CIO at Reliance Capital for over 20 years before starting Abakkus. Prior to Abakkus, in his role as Global Head ‚ Equities at Reliance Capital Ltd., he oversaw equity assets and provided strategic inputs across Reliance Capital Group of companies including asset management, insurance, AIF, and offshore assets. And as CIO ‚ Equities, Singhania led Reliance Mutual Fund equity schemes.Furthermore, he led Reliance Nippon Life Asset Management Ltd.'s international efforts and was instrumental in launching India funds in Japan, South Korea, and the UK, besides managing mandates from institutional investors based in the US, Singapore, and other countries. He is a CA rank holder and a CFA charter holder and graduated in commerce from Mumbai University.
Aman Chowhan | 4-star rated FM
Fund Manager | 25 yrs Experience | 7 yrs at current firm
Past Experience: Portfolio Manager (Reliance Capital), Equity Analyst (Reliance MF, TAIB Securities, Tata TD Waterhouse Securities)
Aman Chowhan comes with 2 decades of experience in the equity markets. Prior to joining Abakkus, he was Portfolio Manager for all local and offshore schemes for the PMS division of Reliance Asset Management. Having worked at the Singapore office of Reliance, Aman brings along a regional and global perspective in investing and has a strong track record across ‚ benchmark, absolute long, and long-short strategies. Before joining Reliance in 2005 he was associated as a research analyst with TAIB securities, Tata TD Waterhouse, and other brokerage firms. Aman holds an MBA degree from Mumbai University.
