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Birla AMC Sp. Opportunities

Scheme Rating

IME Scheme Rating

The Scheme does not meet our selection criteria at this time

Not a recommended fund: This is not a recommended fund, primarily because the AMC does not meet our selection criteria. We believe that there are better fund houses to invest in, within the Indian mutual fund universe.

IME Strategy Rating

Concentrated Flexi-cap Strategy: The core focus would be on approximately 15-25 companies that are primed to benefit from the catalysts mentioned like Micro Turnaround, Macro / Change in the business cycle, Management Change, Deleveraging, Demerger, Mid to Large Cap Potential and Secular Growth Names. Their Philosophy is fairly vague which provides a large leeway for fund managers to invest across sectors & styles. The inclusion of ‘secular growth’ in a portfolio positioned as special opportunities is a clear indication of such style drift.

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 Birla AMC Sp. Opportunities

Type: Flexi Cap | Value | AUM (300.2 cr) | Inc Date (14 Jun 2018)

Aditya Birla Capital India Special Opportunities- Investment Strategy

Birla PMS’s India Special Opportunities Portfolio endeavors to exploit the inefficiencies in the market that leads to mispricing of stocks that are fundamentally strong. It also identifies catalysts at both micro and macro level that benefits these stocks and helps unlock their value over a 2-3 year horizon.

Portfolio Construction 

(65-70%)– Micro turnaround, Macro/change in business cycle, management chage, delevraging, demerger. These catalyst have a highrer upside potential to play out over a period of 2-3 years. 

(30-35%)- seeking for mid to large cap potentials, secular growth names. These are a consistent performer. 

Investment Process

  • Portfolio Universe– built by applying Quantitative and Qualitative screeners and evaluating ROE/ROCE, leverage and debt servicing and management quality. 
  • Reject companies which do not filter through these screeners by identifying companies benefit from the catalysts which are micro/macro trunaround, demerger/delevraging and management change. 
  • Narrowing down the list to 50-60 sticks by having an optimised portfolio by analysing risk reward and having the potential upside of 100% in 3-4 years. 

Finally selecting 15-25 quality companies with high growth and potential upside. 

Trailing Performance

1yr 3yr 5yr Since Inception
Birla AMC Sp. Opportunities 37.3 25 22.5 19.2
S&P BSE 500 TRI 34.7 18 18 16
Alpha over Broad Mkt BM 2.6 7 4.5 3.2
Nifty 500 33.8 16.9 16.6
Alpha over Category BM 3.5 8.1 5.9

Performance as of: 31-May-24 | Inception Date: 14-Jun-18

Fund Managers

Vishal Gajwani | 2-star rated FM

Fund Manager | 18 yrs Experience | 7 yrs at current firm

Past Experience: Birla MF (FM), Reliance Capital (Asst FM)

Vishal has over a decade of buy-side equity experience, having worked as analyst at Reliance AMC, prior to joining BIrla MF where he worked as a Fund Manager prior to joining the PMS division.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1% fixed + 20% above 12% hurdle
Exit Fees1yr(3%), 2yr(2%)

AMC

AMC: Birla AMC PMS (click link for detailed AMC review)

Not a top recommendation due to being an AMC-driven PMS: Birla AMC PMS suffers from the common ailments of large AMC-driven PMS houses (PMS as an add-on instead of a clearly segregated business unit, churn in the investment team, a lack of skin in the game for the CIO and typically loosely defined investment philosophies). While the distribution strengths of the AMC can help the PMS scale and there are benefits of research access, most AMC driven PMS's cannot compare to strong CIO-cum-founder driven PMS houses.

AMC Rating

3 of 5 stars

AMC Pedigree

3 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

1 of 5 stars

Performance

2 of 5 stars

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