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Quest Flagship

Scheme Rating

IME Scheme Rating

3 of 5 stars

Quest Flagship PMS can be considered for investments: On the back of the strong pedigree of the AMC & investment team, even as performance in recent times has been average

IME Strategy Rating

3 of 5 stars

Concentrated Large & Mid Cap Strategy: 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.

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 Quest Flagship

Type: Large & Midcap | GARP | AUM (620.7 cr) | Inc Date (12 Oct 2007)

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 43.4 16.3 16.8 16.8
S&P BSE 500 TRI 39.5 19.5 19 10.9
Alpha over Broad Mkt BM 3.9 -3.2 -2.2 5.9
Nifty 500 38.4 18.1 17.5
Alpha over Category BM 5 -1.8 -0.7

Performance as of: 28-Feb-23 | Inception Date: 12-Oct-07

Fund Managers

Aniruddha Sarkar | 3-star rated FM

Fund Manager | 16 yrs Experience | 4 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.

Bharat Sheth | 5-star rated FM

Head Equities | 44 yrs Experience | 30 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.

Fee Structure

Fee StructureFee
Fixed Fee Structure2
Variable Fee Structures1.5% fixed + 12% above 8% hurdle
Exit Fees1yr (1%)

AMC

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

Decent AMC with weak short-term performance: Quest AMC is founded by 2 seasoned investment professional (Ajay & Bharat Sheth), who have delivered outperformance to the markets over the longer-term, and the PMS recently strengthened the team with the inclusion of Aniruddha Sarkar (who comes in post a successful stint at IIFL). The main concern is relatively weak performance in recent years, which we would wait to improve prior to more actively recommending the PMS for investments.

AMC Rating

3 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

3 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.