Accuracap Alpha10
Accuracap PMS | Equity | | PMSIME's View on Accuracap Alpha10
Strategy
AI-Driven Large Cap
Investment Fund
For investors seeking to leverage the latest computing technologies (Big Data, AI, Behavioural Analysis) for a quant-driven approach. While we like the quant approach the Accuracap brings to the table, we prefer their Picopower strategy given the ability to find pricing inefficiencies in the small cap space compared to larger companies.
Fund's Strategy View
Quant-strategy that seeks to construct a portfolio of 12-35 high-quality companies (large-cap focused) based on Artificial Intelligence, Intelligent Ranking Algorithms. An algorithm based on fundamental factors & risk management, the portfolio is rebalanced once a year, and stocks are exited if they fall below the cut-off ranking on Intelligent Ranking Algorithm. Focused on large caps & fundamentally strong companies which helps liquidity risk and transaction cost.
Fund Performance
The fund has underperformed peers & is amongst the worst performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance consistency has been mixed, with the fund having outperformed & underperformed the bechmark roughly in half the years.
IME's View on Accuracap PMS
View on AMC
AccuraCap PMS is a unique quant-based PMS with a team of experienced founders and investors known for their expertise in technology and finance.
AMC's Pedigree
AccuracapPMS has a strong pedigree with founders who are experienced in computer science, tested their strategy with their own money before opening to public investments, and have a 10-year track record in quant strategies.
AMC Team
Accuracap was founded by 2 seasoned data scientists - Naresh Chand Gupta (core-promoter) & Raman Nagpal - both of whom are highly qualified in computer science, big data analysis, and machine learning, making them ideal candidates for running a quant strategy due to their expertise in these areas. After a strong tenure, Raman Nagpal recently left Accuracap, to focus on AltaAcura (a long-short AIF with a similar AI-ML quant focus). While this is an important departure, since Naresh was the more senior & original founder, and with the algorithims having stablised & proven themselves over time - we make a note of the churn but do not downgrade our team rating.
Investment Philosophy
Accuracap's quant-based investment process focuses on 3 stages - (1) Data clean up from Reported Earnings (2) Analysis & Ranking of the Universe based on AI Based spatio-temporal rankings based on an algorithm that uses extensive data points (3) Portfolio construction on the basis of the ranked universe. A quant strategy's effectiveness is determined by its real-market performance, not its philosophy. With a proven track record of over 10 years, the algorithm seems to consistently perform very well in the small-cap space (where PicoPower is amongst the most consistent smallcap funds), but performance in large-caps has not been as strong.
Investment Philosophy
Accuracap PMS’s Alpha 10 strategy is a quant-strategy that seeks to construct a portfolio of 12-35 high-quality companies (large-cap focused) based on their Artificial Intelligence based Intelligent Ranking Algorithm. The algorithm is based on fundamental factors & risk management, with the portfolio being rebalanced once a year and stocks exited if they fall below the cut-off ranking on the Intelligent Ranking Algorithm. The average historical holding period of stocks is ~2 years.
Philosophy driven by ‘Pure Quants’ We believe that a quant strategy is best run by ‘pure quants’, and this is what both Naresh Gupta & Raman Nagpal bring to the table. The founders are the core investment team, both Naresh and Raman come with unparalleled educational & professional qualifications in the fields of computer science, big data analysis & machine learning.Portfolio Construction
- Low Churn and Tax Efficient: average holding period is 2 years. All gains are long-term capital gains. The strategy aims to be fully invested and does not attempt to time the Market
- Portfolio Rebalancing: rebalanced on a pre-defined schedule and usually once a year
- Exits: exits the portfolio if the rank is below the cut-off on the rebalance date where the exiting Stock is replaced by the new high-ranked stock while keeping the number of stocks in the portfolio constant.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Accuracap Alpha10 | -10.4 | 10.5 | 11.5 | 13.3 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 13.3 |
| Alpha over Broad Mkt BM | -3.8 | -4.2 | -7.7 | 0 |
| Nifty 50 TRI | -3.5 | 14.2 | 18.4 | |
| Alpha over Category BM | -6.9 | -3.7 | -6.9 |
Performance as of: 30-Sep-25 | Inception Date: 19-Sep-11 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Naresh Chand Gupta | 5-star rated FM
Co-founder & CEO | 36 yrs Experience | 10 yrs at current firm
Past Experience: Adobe India (MD & CEO), LNK Corp (Director-Artificial Intelligence)
Naresh is a computer scientist, researcher and corporate executive with impressive technology credentials. As CEO of Adobe India, Naresh oversaw 3500+ engineers and was responsible for over 40% of Adobe's global R&D, including the grant of hundreds of patents. Naresh is the author of several seminal scientific papers in the area of Artificial Intelligence, Pattern Recognition, and Computer Vision and holds seven Individual U.S. Patents. He left Adobe to start Accuracap PMS in 2015, in order to use his technical expertise in algo-based quant investing.
