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Equirus Long Horizon

Scheme Rating

IME Scheme Rating

5 of 5 stars

One of our most recommended small-cap funds: A combination of an AMC with a clear small-cap focus, a small-cap specialist fund manager and a very strong track record, makes Equirus Long-Horizon fund one of our most recommended small-cap PMS funds.

IME Strategy Rating

5 of 5 stars

Smallcap Focused: It invest in superior big-potential businesses at reasonable valuations(below their intrinsic value) with a view a long-term view of 3-5 years. They are intent to be early in the business discovery, thus providing maximum earnings growth with limited churn. The fund has outperformed its benchmark in every calendar year since its inception over 5 years ago. It is one of the very few schemes that has managed to demonstrate this level of consistency in outperformance.

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 Equirus Long Horizon

Type: Small Cap | GARP | AUM (901.4 cr) | Inc Date (20 Oct 2016)

Investment Philosophy

Equiris Long Horizon Fund is a small-cap strategy. Invest in superior businesses with a view of 3-5 years. The strategy intends to be early in the business discovery, thus providing maximum earnings growth with limited churn.

Equirus PMS follows a blended approach of investing in quality & value. The aim is to invest in relatively undiscovered businesses with long-term growth potential that are available at a price below their intrinsic value. The philosophy is essentially GARP (Growth at Right Price).

Investment Framework

  • Growth: Earnings driven by sales and margin expansion
  • Financial Strength: no or low debt, and deleveraging situations with higher coverage ratios
  • Profitability: High ROCEs driven by improving margins and/or asset turns
  • Management: High integrity with skin in the game and prudent capital allocation
  • Attractive Valuation: low analyst coverage/institutional holding and market ignoring long term potential

Portfolio Construction

  • Undiscovered Companies: Focuses on high-quality companies that are under-researched and under-owned with a bias for small and mid-cap companies at a reasonable valuation.
  • Non-model portfolio approach: Does not follow model portfolio.
  • Long-term outlook: Aims to buy businesses for atleast 3-5 years.
  • Concentrated bets: Aims to hold 15-17 companies with a maximum of 10% in a single stock and 30% in a sector on the cost basis.

Trailing Performance

1yr 3yr 5yr Since Inception
Equirus Long Horizon 53.7 22 30.7 24
S&P BSE 500 TRI 39.5 19.5 19 15.7
Alpha over Broad Mkt BM 14.2 2.5 11.7 8.3
Nifty Smallcap 250 67.7 29.7 25.2
Alpha over Category BM -14 -7.7 5.5

Performance as of: 28-Feb-23 | Inception Date: 20-Oct-16

Fund Managers

Viraj Mehta | 4-star rated FM

Portfolio Manager | 14 yrs Experience | 8 yrs at current firm

Past Experience: Investment Professional (ValueQuest Capital LLP), Equity Investment Analyst (Franklin Templeton Investments), Midcap Equity Analyst (Equirus Securities Private Ltd)

Viraj Mehta has over 11 years of experience in investing with a proven track record (primarily in equity research). Viraj was selected by Wall Street Journal as part of the “Asia’s Master Stock Picker” series for India, and he has rich equity research experience at Franklin Templeton.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures
Exit Fees1yr(2%), 2yr(1%)

AMC

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

Highly recommended for aggressive investors looking for Small Cap focus: Equirus PMS has had a good start with a strong performance of its portfolio since its launch in 2016. Its focus on small-caps fits well with the group's strengths in small & midcaps on the broking side and the experience of their PMS fund manager Viraj Mehta. Equirius has the foundations to build a niche PMS business driven by the experience of the main fund manager, and the differentiation through a small-cap focus.

AMC Rating

4 of 5 stars

AMC Pedigree

4 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

4 of 5 stars

Inv Philosophy

4 of 5 stars

Performance

5 of 5 stars

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