Quest Flagship
Quest PMS | Equity | | PMSIME's View on Quest Flagship
Strategy
Investment Fund
The stratgey can be considered for investment on the back of the strong pedigree of the AMC & investment team, even as performance in recent times has been average.
Fund's Strategy View
Quest Flagship PMS follows a flexible investment mandate (sector & market cap agnostic, no specific style focus), that provides the fund manager with a high degree of flexibility to build a portfolio based on the current market dynamics. The strategy has demonstrated resilience and maturity since its inception, navigating through various market phases and establishing a decent track record.
Fund Performance
The fund has underperformed peers in the last 5yr trailing returns. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
IME's View on Quest PMS
View on AMC
Quest AMC, founded by Ajay and Bharat Sheth, has added Aniruddha Sarkar to their team from IIFL. The AMC has all the ingredients - equity pedigree, experienced team, scale, well-articulated flexible philosophy and good performance track record. Investors, specifically looking for a sector rotation investment approach, could consider the AMC.
AMC's Pedigree
Quest was established in 1987 as an equity research house specialising in midcap and smallcap companies. They launched their Portfolio Management Services (PMS) in 2007 and have over 15+ years of experience managing investor money in Indian equities. They have remained focused on equities without diversifying into other business lines.
AMC Team
The Quest investment team is led by co-founder Bharat Sheth, with over 25 years of investment experience at Quest. The stability of the investment philosophy is supported by having a co-founder as the CIO. Aniruddha Sarkar, the Fund Manager, has a strong track record at IIFL and works closely with Sheth in the investment decision process. The key risk is the departure of Aniruddha, who has been a good addition to the team, given his lack of ownership in the firm.
Investment Philosophy
Quest Investment Advisors follows a multi-pronged investment approach, summarised by the acronym "QUEST" - Quality, Earnings, Sector Rotation and Timing. They employ a blend of value and growth investing styles, seeking mispriced opportunities in both segments of the market.
Quest Flagship PMS- Investment Strategy
Quest PMS aims to balance value and growth by capturing market opportunity across sectors and market caps which broadly fall into these segments:- Value: Allocation 15-25% in value stocks( Sectors like Capital goods, Autos, Cement, Telecom)
- P/E re-rating: Allocation 35-45% ( Sectors like PSU Banks, Power, Real & Home improvement)
- Growth Stocks: Allocation 35-45% ( Sectors like Financial services, IT & IT Services, Specialty chemicals)
Investment Strategy
- Avoiding the herd: Highly differentiated ideas with minimal overlapping with other MFs and PMSs.
- Active Management of Cash: Can raise cash levels to 15-20% if markets move to extreme bear phases.
- Active style Management: Book profit from time to time if valuations look stretched and there is little room for upside from that level.
Stock Attributes
- Unquestionable management track record
- Leadership position in its sector- scope for margin expansion
- Large addressable market size with few players
- Businesses which are in Y2K moment of growth and disruption
- Strong Cash flow generation capability
- Comfortable manageable leverage on books
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Quest Flagship | -9.2 | 16.3 | 19 | 16.2 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 10.7 |
| Alpha over Broad Mkt BM | -2.6 | 1.6 | -0.2 | 5.5 |
Performance as of: 30-Sep-25 | Inception Date: 12-Oct-07 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Bharat Sheth | 5-star rated FM
Head Equities | 46 yrs Experience | 32 yrs at current firm
Bharat Sheth is a highly seasoned & respected investment professional, having spearheaded the growth of Quest's advisory & PMS business over the past 25 years. Being part of the core founding team, he has provided the much-needed stability and thought leadership that has helped Quest grow into one of the larger PMS providers in India.
Aniruddha Sarkar | 4-star rated FM
CIO | 17 yrs Experience | 6 yrs at current firm
Past Experience: IIFL AMC (FM)
Aniruddha joined Quest in Feb-2020, after a successful stint of over 10 years at IIFL across various roles including Fund Manager for the MF & PMS and as a research analyst.
