Nine Rivers Aurum Multiplier
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Nine Rivers Aurum Multiplier
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
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View on the Fund
Nine Rivers Aurum Multiplier can be considered for investing based on the strong investment pedigree the firm has built through its small-cap strategy. Although the fund was originally launched in 2019, it was made available to external investors only in early 2025 - providing access to a strategy backed by a proven, research-intensive investment approach. While the AMCs credentials are proven in small-caps, the same approach in large and mid cap is yet to be seen.
Strategy
Private Equity Approach
Fund's Strategy View
Backed by the private equity credentials of the founding team, Nine Rivers Aurum Multiplier follows a multi-cap, high-conviction strategy that blends structural and tactical opportunities at the cusp of an earnings upcycle. The portfolio comprises 18–20 stocks, with a balanced allocation of 30–40% in small caps (can overlap with their small cap strategy) and 60–70% in mid and large caps, and follows a low-churn, 3-year investment horizon. The strategy targets growth at reasonable valuations, often uncovering opportunities in overlooked or out-of-favour sectors.
Fund Performance
The fund has outperformed peers in the last 5 year trailing returns. In terms of longer-term annual performance, performance consistency has been mixed, with the fund having outperformed & underperformed the bechmark roughly in half the years.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Nine Rivers Aurum Multiplier | 5.5 | 19.5 | 20.5 | 15.7 |
| S&P BSE 500 | 6.5 | 15 | 15 | 16.4 |
| Alpha over Broad Mkt BM | -1 | 4.5 | 5.5 | -0.7 |
Performance as of: 31-Jan-26 | Inception Date: 13-Dec-19 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Sandeep Daga | 5-star rated FM
Founder & CIO | 27 yrs Experience | 13 yrs at current firm
Past Experience: Director (Frontline Strategy), Head - B2B Investments (ICICI Venture)
Sandeep Daga has over 20 years of experience in Private Equity, Public Markets, and Corporate Finance. Having worked at one of India's leading Private Equity Funds (ICICI Ventures), Sandeep brings his private equity experience to investing in the listed space - by adopting a private equity style approach to listed small-cap investing. He is known for his focus on small and mid-caps.
IME's Review of Nine Rivers PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
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View on AMC
Nine Rivers Capital PMS is a reputable PMS provider specializing in small-cap investing with a private equity approach. They have a strong investments team and a focused approach to mid-and-small cap investing, making them a recommended choice for those interested in smaller companies.
AMC's Pedigree
Founded in 2012, Nine River's Capital is a niche PMS investing with a PE style in listed equities. The fund has a strong track record of outperformance and specializes in small-cap investments.
AMC Team
Nine Rivers Capital has a strong investment team led by founder Sandeep, who has over 20 years of PE investing experience. The firm has recently faced some churn issues, with one of their long-term senior members of their investments team (Vivek Ganguly) having left Nine Rivers in 2024. While this is a negative, the founder Sandeep Daga is ultimately the driving force of investment decisions (along with a seasoned research analyst team) and we believe that this churn should not have an impact on the investment philosophy or longer-term fund performance.
Investment Philosophy
Nine Rivers Capital focuses on investing in small & mid-cap companies using a private equity approach (extensive research, long-term buy & hold approach). They conduct thorough research, including scuttlebutt research, during a 4-8 week process to select stocks. Their stock selection methodologies and risk-control frameworks are well-defined.
AMC Background
Nine Rivers Capital PMS was founded in 2014 by Sandeep Daga (an experienced private equity professional), with an aim of bringing ‘private-equity’ style investing to listed small & mid cap investing in India. AMC Backed by Investment Team with Strong PE Credential Founded in 2014, Nine River's Capital is a niche PMS that aims to invest with a PE style in listed equities. While it is backed by a strong promoter with strong PE credentials, the firm has not yet scaled in-line with its potential.Investment Philosophy
Nine Rivers Capital PMS’s core belief is that you can only generate superior long-term returns in small & mid caps by applying the same rigor and discipline as in private equity investing. The aim is to exploit the judgmental biases and behavioural weaknesses of market participants, to identify attractive investment opportunities. Nine Rivers looks for the following attributes in possible investee companies – dominance in a niche vertical, growth tailwinds, a robust balance sheet, strong ROEs and a lack of institutional research coverage. Private-equity Approach to Small-cap Investing Nine Rivers Capital has a clearly articulated investment philosophy focused on investing in small & mid-cap companies with a private equity approach. The stock selection methodologies, along with their risk-control frameworks are strongly defined.Investment Process
- Ideation and Discovery: Spotting value-creation drivers through macro-tailwinds (policy, regulatory, consumer-behaviour, and technology among others)
- Fundamental Evaluation: Strong 15% earnings growth with free cash flows, low leverage, good governance and sustainable 15%+ ROCEs
- Conservative Entry Point: Buy growth at reasonable valuation. Average entry PE below 20x.
- Risk Management: Constant monitoring (of positions, performance, governance and macro), pro-active exits (based on valuation guardrails, thesis deviation, macro events, and superior alternatives), and selective forensic diligence where indicated.
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