Right Horizons Super Value M&S Cap
Right Horizons PMS | Equity | | PMSIME's View on Right Horizons Super Value M&S Cap
Strategy
Investment Fund
This is not a recommended fund, primarily because the AMC does not meet our selection criteria. We believe that there are better fund houses to invest in, within the Indian fund universe.
Fund's Strategy View
A diversified equity portfolio that endeavours to achieve long-term capital appreciation and generate returns by investing in Mid & Small cap companies enjoying some economic moat or undergoing special situations or in the midst of an unfavourable business cycle. Right Horizon- Super Value is a relatively new strategy and has outperformed 2 out of 3 Calendar years. We would prefer for the strategy to age to better understand the team's ability to perform better over the long term and in different market conditions.
Fund Performance
The fund has outperformed peers & is amongst the top performing schemes in this category in the last 5 year 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 Right Horizons PMS
View on AMC
Right Horizons has achieved notable growth and scale, and can now be considered; however, we remain cautious given the high volatility in its annual performance.
AMC's Pedigree
Right Horizons has grown and improved its strategies, but it is not as reputable as other established PMS firms.
AMC Team
Anil Rego has gained investment experience at Right Horizons despite lacking prior experience, and the team has been bolstered by the addition of Piyush Sharma, an experienced investments professional.
Investment Philosophy
Right Horizons PMS does not have a PMS-level investment philosophy; strategies are defined at a scheme level.
Right Horizons Super Value-Investment Strategy
Super Value is a blended Mid and Small-cap strategy identifying multi bagger stocks. Benchmark agnostic sectoral exposure in midcap companies having higher risk tolerance. Portfolio turnover being moderate. Super value’s benchmark being NSE Mid Cap 150.
Investment Suitability
Super Value is ideal for investors looking for concentrated portfolio. It aims to deliver sustainable out-performance over long term. This is most suitable for investors with moderate to high-risk appetite and looking for high teen returns.
Investment Process
- RH Screener: RH screen from a universe of 1300 companies based on ROE, ROCE, PAT Growth, Promoter holding, etc.
- RH Scorecard: Their Stock Evaluation Framework is built based on the emphasis on Valuation and Return Ratios, Forensic Filters and Selected line items from Financial Statements.
- RH Risk Radar: Their Risk Evaluation Criteria looks at regulatory changes to be able to capture business risk, limit sector and stock level exposure and re-balance portfolio.
- RH Pendulum: Stock re-balancing framework giving focus on both fundamental levels and opportunistic technical levels.
Portfolio Construction
- Core Portfolio: Capital Efficient high growth companies ~ 80% portfolio allocation
- Satellite Portfolio: Companies with turnaround stories/ Contrarian bets having higher margin of safety and greater risk-reward potential ~ 20% portfolio allocation
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Right Horizons Super Value M&S Cap | 15.2 | 16.4 | 25.4 | 15.5 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 14.8 |
| Alpha over Broad Mkt BM | 21.8 | 1.7 | 6.2 | 0.7 |
Performance as of: 30-Sep-25 | Inception Date: 30-Nov-12 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Anil Rego | 3-star rated FM
Founder & CEO | 28 yrs Experience | 22 yrs at current firm
Past Experience: Manager - M&A and Business Planning (Wipro)
Anil Rego started his career with Wipro Technologies with roles in Business Planning and Mergers and Acquisitions. Later, in Oct 2003, he went on to start Right Horizons (with an initial focus on wealth management). Anil has also served as a member, Board of Governors, at IBSAF.
Piyush Sharma | 3-star rated FM
Portfolio Manager | 21 yrs Experience | 15 yrs at current firm
Past Experience: Co-Founder and Portfolio Manager (Metis Capital Management Ltd.), Principal (Contravest Associates), Senior Equity Analyst & VP (Longbow Research)
Prior to joining Right Horizon, Piyush Sharma's experience was as an international investor investing in India through listed equity-focused offshore and onshore structures. The experience runs across several industries in the USA and India, including Business Services, Auto & Auto parts, Consumer Products, Specialty Retail, Consumer Finance, and Special Situations.
