Axis Pure Contra
Axis PMS | Equity | | PMSIME's View on Axis Pure Contra
Strategy
Contra Investment Approach
Investment Fund
We typically do not recommend Thematic funds to investors, since it requires getting in and out of the theme at the right time. Typically a strong contra approach (investing in themes when they are out of favour, and getting out when they are popular) leads to better performance, but this is very hard to actually implement in practice given strong behavioural instincts against such an approach (investors often end up entering themes post a run-up, which can often be the worst time to invest). In our view, thematic funds are primarily suitable for more astute investors who have a deep underlying understanding of the investment merits of the theme.
Fund's Strategy View
Axis Securities Contra portfolio aims to invest via a contra strategy. The aim is to invest in stocks that are either available at a deep discount or have fallen prey to events that would have a temporary impact on earnings. Axis Securities Contra was launched only in 2020 and is yet to mature in terms of longer-term performance.
Fund Performance
We refrain from evaluating the fund since it is yet to mature (less than 5 years).
IME's View on Axis PMS
View on AMC
Axis is a well-known brand, but its investment management expertise is stronger in the MF AMC compared to Axis Securities, which is newer in this space. Due to a lack of defined team, philosophy, and track record, we do not recommend investing in any Axis Security PMS strategies currently.
AMC's Pedigree
Axis Securities, formerly known as Enam Securities, is a reputable institutional equity brokerage firm, but their credibility as an asset management company is still unproven.
AMC Team
The fund management decisions at Axis Securities PMS are driven by a combination of sources, including a DIY portfolio construction approach utilizing investment ideas from the equity research team.
Investment Philosophy
Investment philosophy is not clearly defined at the PMS level; investment mandates are driven by individual strategies.
Investment Strategy
Axis Pure Contra Strategy aims to exploit market inefficiencies by investing in stocks that are undervalued or have experienced significant declines due to temporary, unexpected events. The strategy focuses on three primary investment styles
- Value Investing: Identifying and investing in companies trading below their intrinsic value.
- Momentum-Alpha: Targeting stocks with strong momentum and alpha generation potential.
- Special Situations: Capitalizing on unique opportunities arising from corporate actions or market anomalies.
Investment Approach
Contrarian Strategy: The portfolio is designed to capitalize on investment ideas that are either available at attractive valuations or have witnessed significant declines owing to unexpected events that would have only a temporary impact on their earnings.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Axis Pure Contra | -9.7 | 21.8 | 22.8 | |
| S&P BSE 500 | -6.6 | 14.7 | 18.1 | |
| Alpha over Broad Mkt BM | -3.1 | 7.1 | 4.7 |
Performance as of: 30-Sep-25 | Inception Date: 27-Nov-20 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Naveen Kulkarni | 3-star rated FM
CIO | 24 yrs Experience | 6 yrs at current firm
Past Experience: Reliance Securities (Head of Research), Philip Capital (Co-Head of Research), Religare Securities (Research Analyst)
Naveen Kulkarni more than 15 years of experience in the Financial Services. Prior to working in the financial services industry, Naveen was part of the telecom industry. Naveen Kulkarni, in his previous stints has not held a fund manager role prior to taking up the CIO mantle at Axis Securities. In his previous assignment, Naveen was responsible for Institutional and Retail research as Head of Research with Reliance Securities Limited. He also served as Co-Head of Research with PhillipCapital India Private Limited in his 11-year long association with the organization. He is a CFA and FRM charter holder.
