Renaissance Midcap
Renaissance India PMS | Equity | | PMSIME's View on Renaissance Midcap
Strategy
Investment Fund
Renaissance Midcap is a concentrated midcap strategy, run by a pedigreed fund manager. While performance has been a bit volatile (large underperformance initially, followed by a strong recovery), the fund can be considered for investments by aggressive investors.
Fund's Strategy View
Focussed portfolio approach of around 20-25 stocks. Buying High growth business at an early stage and riding the growth trajectory
Fund Performance
Fund returns are largely in-line with category average returns over the past 5 years. 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.
IME's View on Renaissance India PMS
View on AMC
While Renniassance India PMS has a fund manager with a strong track record, it is still young and sub-scale, possibly due to a focus on AIF's. We prefer to wait for the PMS platform to mature before recommending investments.
AMC's Pedigree
Renaissance India PMS, founded by a respected fund manager, is a young firm that has not fully scaled its PMS business, potentially due to a focus on the AIF platform. Founded by Pankaj Murarka, the firm launched its PMS in January 2018. It has since grown into a diversified platform with multiple strategies across market caps—Large Cap (ROP), Flexi Cap (RINP), and Mid Cap (RMP).
AMC Team
AMC is led by Pankaj Murarka, who brings over two decades of experience in Indian equity markets. Prior to founding Renaissance, he held CIO-level roles at Axis Mutual Fund and senior positions at UTI AMC, Rare Enterprises (Rakesh Jhunjhunwala), and Merrill Lynch. His track record in institutional asset management lends credibility and process maturity to the PMS offering.
Investment Philosophy
Renaissance adopts a blend of quality and growth investing across its strategies. It seeks businesses at different stages of their lifecycle, combining strong fundamentals with improving business momentum. Portfolio construction emphasizes concentration (20–25 stocks), risk-adjusted returns, and a balance between top-down macro insights and bottom-up stock selection.
Investment Strategy
Renaissance Midcap Portfolio aims to achieve long-term capital appreciation by investing in mid-cap and small-cap companies poised for significant growth, with the potential to ascend to large-cap status.
Core Investment Approach
Investment Philosophy
- Focus on Early-Stage Business Leaders: Targets companies demonstrating business leadership early in their lifecycle, emphasizing those with innovative approaches and strong market potential.
- High-Growth Potential: Invests in businesses exhibiting very high growth trajectories, aiming to capitalize on their expansion phases.
- Identifying Future Large-Cap Entities: Seeks mid-cap and small-cap companies with the potential to evolve into tomorrow's large-cap and mid-cap leaders, respectively.
- Low Mortality Portfolio: Emphasizes selecting companies with sustainable business models to minimize investment attrition and enhance portfolio stability.
- Long-Term Investment Horizon: Adopts a patient investment approach, allowing businesses to realize their full growth potential over time.
- Concentrated Portfolio: Maintains a focused portfolio comprising 20-25 high-conviction stocks, ensuring in-depth analysis and monitoring of each investment.
Sustainable Quality Growth at Reasonable Prices (SQGARP):
- Sustainability: Focuses on companies with durable and robust business models.
- Quality: Targets businesses demonstrating competitive advantages, pricing power, high Return on Equity (ROE), free cash flow, and competent management teams.
- Growth: Seeks companies capable of delivering superior growth over the medium to long term.
- Price: Emphasizes investing at fair valuations, assessing the economic value of businesses.
Key Investment Theme
- Services: Investing in companies offering innovative and scalable service models.
- Capital Markets: Focusing on firms that facilitate financial market operations and growth.
- New Age Capex: Targeting businesses involved in modern capital expenditure projects, including infrastructure and technology upgrades.
- IT / Gen AI: Investing in information technology and companies leveraging generative artificial intelligence.
- Healthcare: Focusing on organizations advancing medical services, pharmaceuticals, and biotechnology.
- Financials: Targeting institutions providing banking, insurance, and financial services.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Renaissance Midcap | -11.7 | 16.3 | 23.9 | 12.5 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 13.1 |
| Alpha over Broad Mkt BM | -5.1 | 1.6 | 4.7 | -0.6 |
| Nifty Midcap 150 | -5.7 | 21.8 | 26.6 | |
| Alpha over Category BM | -6 | -5.5 | -2.7 |
Performance as of: 30-Sep-25 | Inception Date: 24-Oct-17 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Pankaj Murarka | 4-star rated FM
Founder & CIO | 29 yrs Experience | 9 yrs at current firm
Past Experience: Head Equities (Axis AMC), India Portfolio Manager (Merril Lynch), Portfolio Manager (Rare Enterprises), Vice President (Motilal Oswal Financial Services Ltd), Portfolio Manager (UTI Mutual Fund)
Pankaj Murarka comes with 24 years of experience. He was associated with Axis Mutual Fund as CIO managing over $3bn in Indian Equities. He was recognized by Outlook Money as a Leading Fund Manager with 5 years of a track record of consistent performance in the year 2015.
