Purnartha Vision
Purnartha PMS | Equity | | PMSIME's View on Purnartha Vision
Strategy
Investment Fund
While it is still early days of the strategy, we are confident that the team will replicate their performance in their PMS fund as well. We recommend the strategy, however, investors should note that the strategy has higher than usual concentration even within the PMS-AIF universe.
Fund's Strategy View
Purnartha Vision is a concentrated multi-cap portfolio (18-25 holdings with a maximum of 10% allocation per company) that aims to identify long-term investments with high growth potential and strong balance sheets. Purnartha's focus on concentration in scalable businesses with great operating history and management capability is an attractive strategy.
Fund Performance
We refrain from evaluating the fund since it is yet to mature (less than 5 years).
IME's View on Purnartha PMS
View on AMC
Established in 2011 as a RIA, Purnartha has a strong research background and stock selection. Despite being new in PMS and AIF offerings launched in 2020, the AMC and team have a good pedigree. Their research is skilled in identifying quality ideas, but the high level of concentration makes it more suitable for higher-risk investors.
AMC's Pedigree
Purnartha has excelled in advisory services with highly concentrated stock strategies, leading to strong performance. They transitioned to a PMS structure in 2020, and despite being a new firm in this area, their successful advisory track record enhances their credibility.
AMC Team
Purnatha has a strong research team led by founder and core Fund Manager Rahul Rathi, with 15+ years of investment experience. Other senior team members include Raghu Sundaram, Devendra Phadke, and Hemant Vispute, bringing a wealth of experience in finance and research. The senior investments team is supported by a large in-house research analyst team.
Investment Philosophy
Purnartha's "Three Driver Philosophy" is based on 3 criteria - 1. Margin expansion, 2. consistent volume growth and 3. Valuation. The philosophy focuses on scalable businesses with strong operating history and growth potential, along with committed management. It is well-documented and includes criteria for assessing investment value, as well as guidelines for portfolio construction.
Investment Strategy
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- Concentrated Multi-Cap Portfolio: Invests in 18-25 carefully selected stocks across large-cap, mid-cap, and small-cap segments, ensuring a balanced exposure to various market capitalizations.
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- Three-Driver Philosophy: Utilizes a comprehensive approach focusing on:
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- Volume Growth: This strategy targets companies with a minimum of 10% volume growth, which indicates robust demand and scalability.
- Margin Expansion: Seeks businesses capable of improving operating margins, and enhancing profitability.
- Valuation: Employs proprietary valuation methods to identify undervalued opportunities with potential for appreciation.
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- Three-Driver Philosophy: Utilizes a comprehensive approach focusing on:
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- Sector-Agnostic Selection: Prioritizes non-cyclical companies with strong fundamentals, irrespective of the industry, to mitigate sector-specific risks.
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- Net Cash Companies: Focuses on businesses with zero net debt, ensuring growth is funded by internal accruals rather than leverage, thereby reducing financial risk.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Purnartha Vision | -12.7 | 11.5 | 10.2 | |
| S&P BSE 500 | -6.6 | 14.7 | 15 | |
| Alpha over Broad Mkt BM | -6.1 | -3.2 | -4.8 |
Performance as of: 30-Sep-25 | Inception Date: 28-Jul-21 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Rahul Rathi | 4-star rated FM
Chairman & Principal Officer | 23 yrs Experience | 12 yrs at current firm
Past Experience: Capital Metrics (CEO), Schroeder New Finance Capital (Vendor)
Rahul Rathi has over 20 years of experience in investment and risk management, having managed global funds exceeding $2 billion in AUM. He has played a key role in shaping Purnartha’s investment strategy. Rahul holds an MBA from Carnegie Mellon University and a degree in Polymer Engineering from Pune University.
Rangarajan Sundaram | 4-star rated FM
Co-Founder & Mentor | 40 yrs Experience | 12 yrs at current firm
Raghu is the Senior Vice-Chancellor and Head of Global Strategy at New York University and Dean Emeritus at NYU Stern. With an MBA from IIM Ahmedabad and a PhD in Economics from Cornell, he has deep expertise in derivatives and credit research, having worked with major Wall Street firms. His distinguished career and academic background shapes the firm's strategic vision and growth.
Rohit Jain | 2-star rated FM
Fund Manager | 18 yrs Experience | 4 yrs at current firm
Past Experience: Lead analyst(Crisil Global)
Rohit is a Chartered Accountant and holds a Post-graduate diploma in Business Management. He has worked with CRISIL (an S&P Global Company) and Systematix Shares among others and carries over 13 years of experience in Equity Research for Institutional investors. Over the years, he has built extensive knowledge in financial modeling and valuations with sector expertise across major industries. Rohit also keeps himself updated on the latest developments on taxation, auditing, and compliance, which only adds to his existing wealth management and market know-how.
