Abakkus FlexiEdge AIF
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Abakkus FlexiEdge AIF
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
While the fund is new and lacks its own independent track record, it can be considered for investment given the strong pedigree of Abakkus and Sunil Singhania, coupled with a clearly defined strategy and the AMC’s solid initial performance. The open-ended structure makes it an appealing choice; however, the ₹2 Cr minimum investment may pose a hurdle for some investors.
Strategy
Fund's Strategy View
Abakkus Flexi Edge is an open ended AIF and it follows a flexi-cap approach, constructing a diversified portfolio spanning market caps with a 3-5 year holding period. The allocations are guided by top-down sectoral perspectives, while overall company selections adhere to the meticulous 'MEETS' (Management, Earnings, Events/Trends, Timing, Structural) framework, ensuring a dynamic and well-informed investment strategy.
Fund Performance
We refrain from evaluating the fund since it is yet to mature (less than 5 years).
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Abakkus FlexiEdge AIF |
Performance as of: 31-Jan-26 | Inception Date: 01-Aug-25 | 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 | 26 yrs Experience | 8 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.
IME's Review of Abakkus PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
Upgrade | Upgrade | Upgrade | Upgrade |
View on AMC
Abakkus has leveraged the strong pedigree of it's founder - Sunil Singhani (an industry vetran, ex-CIO of Nippon MF) to build one of India's largest alternatives businesses in a fairly short period (launced in 2018). They have continued to scale, with the launch of AIF and recently MF businesses as well. With a highly pedigreed founder, a clearly defined investment philsophy, a strong team and processes - Abakkus is a strong specialised investments firm, and is a good choice for invesmtents.
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 combined 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.
AMC Background
Abakkus Asset Manager is a relatively new AMC in India, established in 2018. The firm was founded by Sunil Singhania, former CIO of Reliance Nippon AMC, who brings over two decades of market experience with a strong focus on small-cap investing. Despite being a young AMC, Abakkus has scaled up well, supported by the strong pedigree of its founding team and solid performance across its initial years. The core investment team, led by Sunil Singhania and Aman Chowhan (another former Reliance AMC veteran), collectively brings over five decades of investment experience, making Abakkus a credible long-term platform.
Investment Philosophy
Abakkus follows a bottom-up investment philosophy with a strong emphasis on balance sheet quality and earnings growth. Each investment opportunity is evaluated on individual merit rather than being driven by themes or styles.
Tenets of the Investment Philosophy
- Focus on Alpha Generators: Alpha generation is driven through identifying growth companies with above-average profitability, fundamentally underpriced value opportunities with reasonable growth expectations, and scalable mid-cap businesses that have the potential to become large caps.
- Contrarian in Nature: Preference for being early or among the first investors in identified opportunities, rather than following consensus positioning.
- Buy-and-Hold: Invests in businesses as long-term partners rather than adopting a short-term stock-picking approach.
- Risk–Reward Discipline: Strong focus on valuation and understanding what is already reflected in the stock price.
Abakkus’s MEETS Framework
- Management (M): Evaluation of management quality based on capital allocation track record and fairness toward minority shareholders.
- Earnings (E): Assessment of earnings quality (cyclical or structural) and the ability to double profits within four years or achieve meaningful EV/EBITDA compression.
- Events / Trends (E): Analysis of upcoming events, disruptive trends, or emerging themes that could drive re-rating.
- Timing (T): Guided by the principle that a good company is not necessarily a good investment at the wrong price; emphasis on what the market is discounting and the investment time horizon.
- Structural (S): Evaluation of opportunity size, competitive moat, and consistency of profit growth.
Avoid the Four Cs
- Chase Momentum: Investment decisions are driven by fundamentals rather than price movements.
- Churn Unnecessarily: Avoids needless portfolio turnover and trading-oriented behaviour.
- Copy and Mimic: Avoids herd mentality and consensus-driven investing.
- Credit Risk / Fractured Balance Sheets: Companies with stressed balance sheets are avoided as they often turn into long-term value traps.
Exit Strategy
- Fundamentals deteriorate due to sectoral, company-specific, or governance-related issues.
- The stock performs materially better than expected.
- The position becomes insignificant and cannot or should not be increased.
- New investment ideas offer superior risk–reward compared to existing holdings.
The philosophy is further reinforced through a disciplined valuation framework, where investments are typically made either in attractively valued companies (trading below 15x earnings) or in higher-quality businesses that meet strict thresholds of earnings growth and return ratios (ROEs and earnings growth above 15%). Most investments qualify on at least two of these three parameters.
Suitable For
Investors seeking diversified equity strategies managed by a stable, high-quality, and experienced investment team with a long-term, fundamentals-driven approach.
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