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Equirus Long Horizon

Scheme Rating

IME Scheme Rating

4 of 5 stars

Good Small-cap Focused Fund: A combination of an AMC with a clear small-cap focus, a small-cap specialist fund manager and a strong track record, makes Equirus Long-Horizon fund a good option for those seeking small-cap PMS exposures. However, it is important to note that Viraj Mehta the FM since inception of the fund has left Equirus in 2024, and is replaced by Sahil Shah (who also comes in with strong small-cap investing pedigree). Given Sahil’s own strong small-cap investing track record & Equirus’s strengths in this space, we continue to recommend Equirus Long Horizon but would watch keenly for any changes in performance & the investment strategy followed.

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.

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 (598.7 cr) | Inc Date (20 October 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 35.1 15.1 35.6 25.6
S&P BSE 500 TRI 41.1 18.4 22.4 17.3
Alpha over Broad Mkt BM -6 -3.3 13.2 8.3
Nifty Smallcap 250 50.5 25.3 31.2
Alpha over Category BM -15.4 -10.2 4.4

Performance as of: 30-Sep-24 | Inception Date: 20-Oct-16

Fund Managers

Sahil Shah | 3-star rated FM

CIO | 18 yrs Experience | 0 yrs at current firm

Past Experience: Edelweiss Research (Analyst), Anagram Capital (Analyst)

Sahil Shah has over 17 years of extensive experience, he has worked as an analyst and managed mutual funds and PMS. Previously, he worked with Edelweiss Small Cap Fund (AUM 3300cr) as a fund manager and was also co-fund manager for Midcap and Multicap funds at Edelweiss. Prior to joining Edelweiss Asset Management, he has worked with Edelweiss Financial Services and Anagram Capital

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)

Small-cap Specialist: 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. While they have recently seen churn in the investment team, the new CIO Sahil also comes in as a small-cap specialist with a short but strong track-record. Equirius has the foundations to build a niche PMS business with a small-cap focus.

AMC Rating

4 of 5 stars

AMC Pedigree

4 of 5 stars

AMC Size

4 of 5 stars

Team Pedigree

3 of 5 stars

Inv Philosophy

4 of 5 stars

Performance

5 of 5 stars

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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.

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