Girik Multicap
Girik PMS | Equity | | PMSIME's View on Girik Multicap
Strategy
Investment Fund
Investors looking to invest in emerging structural opportunities at early stages with a very strong focus on market leadership, strong governance, capable management and a consistent track record.
Fund's Strategy View
The investment philosophy is well-defined as well as fairly flexible giving the FM the ability to find opportunities within the framework that has worked well since the inception of the fund. The strategy has done well since inception having beaten the benchmark by a good margin.
Fund Performance
The fund has outperformed peers in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been highly consistent, with the fund having outperformed it's benchmark in over 80% of annual calendar years.
IME's View on Girik PMS
View on AMC
Girik Capital is a niche founder-managed PMS provider with a strong 10-year track record of consistent investment performance.
AMC's Pedigree
Girik Capital is a reputable PMS player with a 10-year track record of consistent outperformance. The founder-managed portfolio ensures consistency in investment philosophy and processes.
AMC Team
Charandeep founded Girik with limited listed equity experience but has demonstrated consistent returns over 10 years, proving his fund management capabilities. The investment team mainly consists of Girik members, with the rest of the research team being less experienced.
Investment Philosophy
Girik Capital invests in high-quality businesses with strong growth potential.
PMS Background
Girik Capital was founded in 2009 by Charandeep Singh (an ex-investment banker at Lehman Brothers in New York). Charandeep returned to India to form Girik Capital, following the collapse of Lehman Brothers post the sub-prime Crisis. Established AMC with a strong track-record Girik is niche PMS provider that has a strong 10-year track recordPMS Investment Philosophy
Girik Capital aims to find emerging structural opportunities at early stages, focusing on companies with a large market opportunity, scalable business models, market leadership, strong governance, capable management and a consistent track record.Screening of Stock selection
- Industry Strength: Industry strength when compared to other industries; 50% of a stock performance tied to the industry group; shortlist leading stocks in leading industries.
- Relative Price Strength: Look for leading price performers; 52 week and lifetime highs; winners show price strength early in a bull cycle.
- Earnings Acceleration: Having a stable historical earnings; Accelerating current annual and quarterly earnings; Immense future earnings growth potential
These strengths are contributed by searching for leader by looking at Product/service leadership, businesses having the ability to scale, having a management track record, allocating capital efficiently & delivering superior return ratios, having a governance standards & alignment of interest,
Fundamental Research and Checklist
- Business Model: Product/Service leadership; Market Size & opportunity; Management efficiency-superior execution & delivery
- Financial Metrics: Superior return ratios; Efficient use of capital; Healthy free cash flow generation; Funding of growth ideally through internal accruals; low to no debt
- Governance: No significant related party transactions; Minority shareholder friendly (E.g. Dividends, Buybacks); Alignment of interest- management compensation & ESOP's; Ideally no large promoter pledges and sales in the past; Professionally managed- genuine board of directors, reputed auditors
Valuation
- Value in Growth: Expensive in the short run but cheap in the long run; Accelerating earnings growth combined with leadership ensures premium multiple justification
- Margin of Safety: Assessment of longevity of growth and leadership; Estimate downside risk of going wrong due to overestimating growth
- Traditional Valuation Metrics: Reliance on traditional valuation metrics can be deceiving; Trading Multiples (P/CF, P/E, EV/EBITDA) relative to historical averages- significant premium required serious justification; "low P/E" Investing can be a value trap
Risk Management:
- Portfolio Review: Weekly fundamental stock reviews; Ensure balance in portfolios based on industry& stock concentration, market cap weights, and liquidity; Check for technical/distribution patterns
- Eliminating Losers: Identify and eliminate investment mistakes actively; Monitor for any sectorial and stock weakness; No averaging down on a loss making position
- Taking Profits: Riding winners until see earnings growth deceleration; Selling in euphoric tops; Red flags-crowded trades, consensus bets, excessive media coverage, over-guidance from management
Suitable For
Investor's seeking concentrated multi-cap stock exposures.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Girik Multicap | 1.2 | 22.5 | 21.5 | 20 |
| S&P BSE 500 | 4.9 | 14.6 | 17.2 | 12.1 |
| Alpha over Broad Mkt BM | -3.7 | 7.9 | 4.3 | 7.9 |
Performance as of: 30-Nov-25 | Inception Date: 03-Dec-09 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Charandeep Singh | 3-star rated FM
Co-Founder & Fund Manager | 26 yrs Experience | 17 yrs at current firm
Past Experience: Lehman Brothers (Director)
Charandeep co-founded Girik Capital in 2009, after a successful stint in global investment banking & leveraged finance at Lehmann Brothers in New York.
Varun Daga | 4-star rated FM
Co-Founder & Fund Manager | 19 yrs Experience | 16 yrs at current firm
Past Experience: Own Family Office
Varun is a co-founder of Girik Capital along with Charandeep Singh. Prior to Girik, Varun was responsible for managing the equity investments for his own family office from 2006 to 2009.
Experience the benefits of working with a 'research-first' investments firm
Free 30-Day Trial
Get complimentary access to the revolutionary IME RMS (direct access to IME's central team insights across 1000's of MFs, PMSs, AIFs & Global funds - a first in the industry).
Additionally, a dedicated private banker will help build your financial plan, investment mandate & undertake a comprehensive portfolio review for free.
