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Girik Multicap

Scheme Rating

IME Scheme Rating

4 of 5 stars

Good Multi-cap Investment Option: 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.

IME Strategy Rating

4 of 5 stars

Investment Philosophy: 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.

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 Girik Multicap

Type: Flexi Cap | GARP | AUM (1245.9 cr) | Inc Date (03 Dec 2009)

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 stable historical earnings; Accelerating current annual and quarterly earnings; Immense future earnings growth potential   

These strengths are contributed by searching for leaders 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 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 justifications
  • 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

Trailing Performance

1yr 3yr 5yr Since Inception
Girik Multicap 68.9 24.4 24.8 21.2
S&P BSE 500 TRI 39.5 19.5 19 12.1
Alpha over Broad Mkt BM 29.4 4.9 5.8 9.1
Nifty 500 38.4 18.1 17.5
Alpha over Category BM 30.5 6.3 7.3

Performance as of: 28-Feb-23 | Inception Date: 03-Dec-09

Fund Managers

Charandeep Singh | 4-star rated FM

Co-Founder & Fund Manager | 24 yrs Experience | 15 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 | 3-star rated FM

Co-Founder & Fund Manager | 17 yrs Experience | 14 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.

Fee Structure

Fee StructureFee
Fixed Fee Structure
Variable Fee Structures1% fixed + 15% no hurdle
Exit Fees1yr(3%), 2yr(2%), 3yr(1%)

AMC

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

Highly recommended for investors looking for aggressive investors with a conventional approach: Girik Capital has established its credentials as a niche founder-managed PMS provider, with a strong 10-year track record of consistent investment performance.

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

3 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.