Aequitas Opportunities Product
Aequitas PMS | Equity | | PMSIME's View on Aequitas Opportunities Product
Strategy
Focus on small undiscovered companies
Investment Fund
The combination of a founder-manager who is known to be a small-cap specialist, along with a strong longer-term track record make Aequitas a solid small-cap fund. However a 25 cr min investment size is a major bottleneck (they have an AIF offering with a 3 cr min). Additionally, it is important to note that this portfolio can have high downside volatility (as can be seen in the 50%+ fall in portfolio during the 2018-19 correction). We are still cautious about the following things (a) the high levels of volatility seen in the past (b) very aggressive calls taken - such as very high cash calls in early 2025, these can lead to strong outperformance if it works, but can also lead to sharp underperformance if not (c) not open to dealing with distributors - with limits our ability to access information that is often required to get a clearer view on a fund
Fund's Strategy View
Aequitas's Investment Philosophy revolves around delivering outsized returns, by investing in small-cap undiscovered companies. Aequitas does not follow a model portfolio approach, instead choosing to build customised portfolios for individual clients. The process of identifying multi-baggers includes investing in companies that offer a combination of high growth, a contrarian approach and stocks that offer value (providing a re-rating potential).
Fund Performance
The fund has outperformed peers & is amongst the top performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
IME's View on Aequitas PMS
View on AMC
Aequitas is a strong AMC for aggressive investors due to its founder-fund manager, proven track record in small-cap investments, and clear focus. However, the high minimum investment requirement may be a barrier for some investors.
AMC's Pedigree
Aequitas has built strong AMC credentials through Siddhartha Bhaiya's successful small-cap picks, leading to the company being recognized as a specialist in small-cap investments.
AMC Team
Aequitas's team is known for founder Siddhartha Bhaiya's successful track record in selecting small-cap stocks.
Investment Philosophy
Aequitas focuses on delivering high returns by investing in small-cap undiscovered companies with potential for significant growth. They create customized portfolios for each client, rather than using a model portfolio approach. This strategy involves investing in companies with high growth potential, a contrarian approach, and value stocks with re-rating potential.
AMC Background
The combination of a founder-led investment approach, a proven long-term track record, and a clear specialisation in identifying small-cap winners makes Aequitas a strong AMC for more aggressive investors. The firm has built its credentials on the back of sustained outperformance driven by Siddhartha Bhaiya’s small-cap stock selection, allowing the AMC to scale meaningfully and establish itself as a specialist in the small-cap segment.
Investment Philosophy
Aequitas’s investment philosophy is centred on delivering outsized returns by investing in undiscovered small-cap companies. The strategy does not follow a model portfolio approach; instead, portfolios are customised for individual clients. Multi-bagger identification is driven by a combination of high growth potential, contrarian positioning, and value characteristics that enable stock re-rating over a 3–5 year investment horizon. Portfolios are typically constructed with around 20 stocks, balanced across sectors and supported by clear re-rating catalysts.
Multibagger Approach
- Growth: Companies with above-average growth potential over the foreseeable future.
- Contrarian: Focus on undiscovered opportunities while avoiding crowded or popular names.
- Value: Businesses with clear potential for valuation re-rating.
The combination of earnings growth and P/E re-rating is central to identifying multi-bagger opportunities.
Selection Criteria
- Industry Leaders: Companies with sustainable competitive advantages within their industries.
- Management Quality: Strong corporate governance and consistent long-term execution.
- Valuations: Portfolio valuation maintained below broader market P/E levels.
- Creeping Acquisitions / Buybacks: Preference for companies with promoter buybacks or creeping acquisitions, a common trait among past successful investments.
- Low Debt & Cash Flows: Focus on low leverage or net-cash balance sheets with consistent cash generation.
Suitable For
- High-risk, aggressive investors seeking outsized returns through concentrated exposure to small-cap and emerging businesses.
- Investors comfortable with higher volatility, drawdowns, and longer holding periods typically associated with small-cap investing.
- Investors meeting the minimum investment ticket size requirements, making the strategy more suitable for higher net-worth individuals.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Aequitas Opportunities Product | 35.9 | 43.7 | 46.1 | 32.9 |
| S&P BSE 500 | 4.9 | 14.6 | 17.2 | 13.5 |
| Alpha over Broad Mkt BM | 31 | 29.1 | 28.9 | 19.4 |
| Nifty Smallcap 250 | -4.8 | 20.2 | 25.3 | |
| Alpha over Category BM | 40.7 | 23.5 | 20.8 |
Performance as of: 30-Nov-25 | Inception Date: 01-Feb-13 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Siddhartha Bhaiya | 5-star rated FM
MD & Fund Manager | 21 yrs Experience | 13 yrs at current firm
Past Experience: Fund Manager (Nippon India MF)
Siddhartha a qualified Chartered Accountant is the driving force behind Aequitas & has over 13 years of experience into Equity research and Equity Fund Management. Siddhartha started his career as a Research Analyst with Sushil Finance and has worked with Strat cap Securities. Principal PNB AMC & Reliance Capital Asset Management (RCAM). Siddhartha has developed his fund management credentials at Aequitas where he has demonstrated strong longer-term outperformance based on his small-cap picks.
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