Solidarity Prudence
Solidarity PMS | Equity | | PMSIME's View on Solidarity Prudence
Strategy
Investment Fund
Solidarity’s credibility stems from the FM’s deep experience in Private Equity. The performance has been muted since inception especially when viewed in current environment - this is a clear risk since its deliberate avoidance of short-term tactical bets or cyclical trades may lead to periods of relative underperformance in momentum-driven markets.
Fund's Strategy View
Follows a multi-cap strategy of investing in businesses with growth and signs of business improvement (expanding moats, increasing market shares and strong ROEs). PMS approach of investing in compounding stories backed by clear fundamental parameters. FM's experience in PE goes along with a strategy to follow the PE style.
Fund Performance
The fund has underperformed peers & is amongst the worst 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 Solidarity PMS
View on AMC
Solidarity Investment Managers is a boutique PMS founded by Manish Gupta (ex-BCG, IIM-A), supported by a stable team of partners and analysts. The firm follows a clearly defined investment philosophy focused on long-term compounding through high-quality businesses. However, its deliberate avoidance of short-term tactical bets or cyclical trades may lead to periods of relative underperformance in momentum-driven markets. As a result, the strategy is better suited for patient investors with a multi-year horizon, rather than those closely tracking short-term performance.
AMC's Pedigree
Solidarity PMS is managed by a seasoned PE professional and founder Manish Gupta, who brings strong stock-picking skills to the fund.
AMC Team
Manish Gupta, the founder and CIO, leads the investment decisions with a background in private equity and corporate strategy. The senior team outside of Manish — including Manjeet Buaria and Anirudh Shetty — does not have prior fund management experience before joining Solidarity, and does not provide a strong second-in-line support currently. Manish's experience in listed equities is still developing, but the concept of applying private equity investment rigor to stock selection is appealing. It follows a team-based ownership model, with 25% of profits shared internally.
Investment Philosophy
Solidarity PMS philosophy emphasizes investing in compounding stories with clear fundamental parameters, supported by Manish's PE background in long-term growth opportunities. The strategy is bottom-up, long-term, and concentrated. It aims for 15%+ IRR post-fees and 1.5% alpha over BSE 500 TRI on a rolling 5-year basis. The fund avoids deep cyclicals, poor promoters, and structurally weak business models. Position sizing is guided by portfolio role—growth, longevity, or asymmetric bets. It avoids short-termism, style drift, and excessive product proliferation.
Solidarity Prudence- Investment Strategy
Focus on Tailwinds of growth, expanding moat and increasing market share and ROE
Solidarity Prudence is a multi-cap strategy. Prefer to invest in companies with tailwinds of growth, expanding moat, and increasing market share and ROE.
Investment Philosophy
- Broadly Predictable Growth: Companies with large addressable markets, and structural industries tailwinds
- Improving Edge: Favourable industry structure, sector/niche leadership, competitive advantage and ability to deploy capital for growth at ROE >15%
- Disciplined Management: Focus on few business lines, disciplined capital allocation, prudent use of leverage and learning organisation.
Things that Solidarity does not do
- Don’t believe in model portfolios: model portfolios imply that current valuations do not matter, so the strategy invests in the best opportunities at present
- No cash calls based on macro events
Valuations
Sensitive to growth stage of the life cycle. With more mature business growth, the higher the need for valuation sensitivity.
Strongly Defined Investment Philosophy Solidarity PMS aims to invest in ‘compounding stories’, defined as companies with tailwinds of growth, that are focused on disciplined growth around a core business definition, and where success is reflected in an expanding moat, increasing market share and ROEs. Solidarity PMS may also invest in specific transformational stories, based on specific market opportunities.Portfolio Construction
- Portfolio Allocation: 40-50% in ‘Clear Leaders’, 40-50% in ‘Emerging Leaders’, and ~10% in ‘Special Situations’.
- Clear Leaders (15-18% IRR Ask): Leaders in a growing market, with dominant share of the profit pool and robust business model & balance sheet.
- Emerging Leaders (18%+ IRR Ask): on path to becoming leaders, typically in a specific niche
- Special Situations (25% IRR Ask): good businesses undergoing temporary uncertainty with high price-value divergence.
- Concentration: 15-20 companies with minimum 3% position size
- Position sizing: may vary between 3-15%
- Risk Management: Avoid poor governance and excess leverage. Volatility is not risk.
- Sell: 1) euphoria in valuations and/or 2) new facts change the view
Themes that interest the team
- Opportunity to gain market share in global supply chains: Manufacturing/Services
- Private sector Banks who will gain market share
- Life Insurance: trusted brands, strong distribution
- General Insurance with a preference for the adoption of health insurance
- Digital Business Models and enablers of Digital
- Mitigation of inequality
- Discretionary consumption - "Affordable luxury"
- Financialisation of Savings
- Formalization of the economy
- Thrust on clean energy
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Solidarity Prudence | 1.2 | 11.3 | 17.1 | 16.8 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 15.4 |
| Alpha over Broad Mkt BM | 7.8 | -3.4 | -2.1 | 1.4 |
Performance as of: 30-Sep-25 | Inception Date: 11-May-16 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Manish Gupta | 4-star rated FM
Founder & CIO | 28 yrs Experience | 11 yrs at current firm
Past Experience: RARE Enterprises (MD-Private Equity), Honeywell (Director-Strategy), BCG (Strategy Consultant)
Prior to founding Solidarity in 2014, Manish worked with Rakesh Jhunjhunwala for 8 years as the Managing Director for Private Equity Investments at Rare Enterprises. His prior experience includes 7 years of strategy consulting with the Boston Consulting Group.
