Bay Capital PMS Recommendation & Review

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

IME Strategy Rating

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Not a top recommendation due to lack of scaling of domestic PMS: Bay Capital is primarily a FII focussed fund, has recently launched the domestic structure but is yet to scale.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Bay Capital PMS

Type: Mid & Smallcap | GARP | AUM ( cr) | Inc Date (1.4)

Investment Process

MEETS Framework

Management (M): Evaluation based on capital allocation track record and fairness to minority shareholders
Earnings (E): Quality of earnings, cyclical or structural in nature and ability to double profits in 4 years or less or where EV/EBITDA can half in 4 years
Events/Trends (E): Evaluation of events on the horizon or disruptive trends/new themes
Timing (T): driven by the principle of ‘good company is not necessarily a good investment if the price is not right’. Focus on ‘what is the price discounting’ and time horizon of the investment.
Structural (S): Size of the opportunity, competitive moat and consistent growth in profits.

Avoid the Four C’s

Chase Momentum: let fundamentals drive our investment decision rather than price movements
Churn unnecessarily: No trading. No needless churning of the portfolio
Copy and Mimic: will not be influenced by ‘herd mentality’.
Credit Risk – Fractured Balance Sheet: very difficult to rebuild a broken balance sheet and these stocks eventually turn value traps and hence, are best avoided

OPPORTUNITY MATRIX

New themes start small: Aims to generate alpha in new and emerging themes by capitalizing on the awareness of dissymmetry.
Near to medium-term uptrend in small sectors: Invest in business cycles of smaller companies which aren’t tracked.
Consistency leads to re-rating: Watch for improvement in the consistency of business performance of downgraded companies and grab the opportunity as their performance is consistent.
Deep Value: Identity companies with a lack of market enthusiasm, lack of near-term triggers, liquidity, and under-researched with some growth.
Special Situations: Investing in unique opportunities like M&A, holdings companies trading at substantial discounts, splits in conglomerates etc.
Steady cash-generating companies: Invest in companies generating good cash flows but limited by near-term growth opportunities.

Trailing Performance

	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Bay Capital First
S&P BSE 500 TRI
Alpha (over Broad Mkt BM)
Nifty 500
Alpha (over Category BM)

Fund Managers

Bay Capital First

Not under coverage: This scheme is currently not under our coverage universe.Not under coverage: This scheme is currently not under our coverage universe.Not a top recommendation due to lack of scaling of domestic PMS: Bay Capital is primarily a FII focussed fund, has recently launched the domestic structure but is yet to scale.Not a top recommendation due to lack of scaling of domestic PMS: Bay Capital is primarily a FII focussed fund, has recently launched the domestic structure but is yet to scale.Highly experienced investments team: Bay Capital PMS is managed by the same pedigreed & experienced investments team that manages Bay Capital's FII structure. Highly experienced investments team:mBay Capital PMS is managed by the same pedigreed & experienced investments team that manages Bay Capital's FII structure. Nascent Fund: The fund is a relatively new fund, with less than a 3 year track record. The fund is yet to establish a longer-term track record. The track record of the AMC's other funds or the fund managers longer-term track record, may be considered keeping in mind the relevance of the older track records to this new offering.Nascent Fund: The fund is a relatively new fund, with less than a 3 year track record. The fund is yet to establish a longer-term track record. The track record of the AMC's other funds or the fund managers longer-term track record, may be considered keeping in mind the relevance of the older track records to this new offering.

AMC

AMC: (click link for detailed AMC review)

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.