Unifi Blended Rangoli
Unifi PMS | Equity | | PMSIME's View on Unifi Blended Rangoli
Strategy
Combination of Top-7 themes
Investment Fund
Unifi Rangoli is a good thematic/multi-cap strategy backed by a credible team with more than a decade of experience in running/identifying successful themes, and AMC pedigree.
Fund's Strategy View
Rangoli Fund cherry-picks the best opportunities from across seven themes that Unifi manages -- Spin-off, Deep Value, Hold Co, APJ20, Green, Insider Shadow, and BCAD. The portfolio is likely to have around 15-20 holdings in the strategy. It is a tightly defined thematic investment portfolios. Unifi's Rangoli funds aims to invest in what they perceive to be the best opportunities across the 7 thematic strategies that they run. Since the 7 thematic strategies does lead to a reasonably large investment universe, this may be considered more of a 'best-ideas' fund, as compared to a tightly defined thematic strategy.
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 Unifi PMS
View on AMC
Unifi's unique thematic investment approach and experienced in-house team have positioned them as a leading player in the PMS market, allowing them to successfully deliver consistent results across various strategies and achieve significant growth.
AMC's Pedigree
Since its founding in 2001 by Sarath Reddy, Unifi has grown into a leading PMS player in India - impressively, without the backing of a big broker, AMC, or a star fund manager. It’s a testament to Reddy’s sharp entrepreneurial drive. Now, with the launch of its own mutual fund and GIFT City platforms, Unifi is taking further strides in institutionalising its business.
AMC Team
Unifi's investment team is made up of individuals with limited prior investment expertise, but they have developed strong in-house research capabilities and a consistent process. This stability has allowed them to create their own unique investment style, with Sarath Reddy playing the key role as CIO driving investment decisions.
Investment Philosophy
Unifi has traditionally focused on a thematic investment style, with the launching of specific thematic funds at different points in time (this includes funds like Event Arbitrage, Delisting, Insider Shadow, Sector Trends, Deep Value, Holdco, SpinOff, APJ 20 and BCAD). As the firm scaled, they have shifted their focus away for pure closed-ended thematic funds, towards an open-ended Rangoli strategy that encompasses stocks across the 7 major themes Unifi has invested in the past (making it now more comparable to a flexi-cap strategy, as compared to pure thematic investing).
Investment Philosophy
Unifi Blended – Rangoli Fund cherry-picks the best opportunities from across seven thematic funds that Unifi manages. The strategy looks for opportunities that arise from a blend of emergent themes, corporate actions, and attractiveness of core fundamentals. The portfolio is likely to have around 15-20 holdings in the strategy. The seven themes from which the fund picks their best opportunities are as follows:- Spin-off: Corporate action leading to mispricing in a special situation
- Deep Value Discount (DVD): Deep discount to intrinsic value due to inadequate understanding of the business, relatively low market cap, and liquidity, or lack of correlation to benchmark indices. DVD invests in such businesses and exploits market inefficiencies
- Hold co: Identifies strong underlying businesses and looks for massive valuation discounts that are likely to recover as promoters feel the heat of change in the regulatory landscape
- APJ20: Sectors that become globally competitive and are privy to an expanding market opportunity. APJ20 theme selects firms that have evolved and are in a ripe position to benefit from such growth prospects.
- Green: Focus on companies that provide products and services that help in reducing the carbon footprint in the environment and/or result in more efficient use of natural resources. Sectors identified are – emission control, energy efficiency, water management, and waste management.
- Insider Shadow: Invests in companies in which founders have acquired a meaningful quantity of additional shares at market prices.
- BCAD: Focus is on established companies in the specific sector that are leading the migration of market share from unorganized to organized players. Powerful trends are driving the shift in the balance of competitive advantage in favor o organized businesses.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Unifi Blended Rangoli | -3.9 | 13.8 | 20.5 | 19.1 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 14 |
| Alpha over Broad Mkt BM | 2.7 | -0.9 | 1.3 | 5.1 |
Performance as of: 30-Sep-25 | Inception Date: 07-Jun-17 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Sarath K Reddy | 5-star rated FM
CIO | 36 yrs Experience | 24 yrs at current firm
Past Experience: Navia Markets (MD), Stan C (Manager)
Having started his career with Standard Chartered Bank, Sarath founded Unifi Capital in 2001 and has since built the company into one of the leading PMS providers in India. As CIO, he works closely with his investment team to deliver outperformance on Unifi PMS strategies.
Baidik Sarkar | 4-star rated FM
Fund Manager | 19 yrs Experience | 18 yrs at current firm
Past Experience: Unifi (Corporate Finance), PWC (Strategy Consultant)
Baidik has been with Unifi for over a decade, with core responsibilities of research in the IT, real-estate and the agricultural sectors and assisting the CIO in managing the spin-off and APJ funds.
Saravanan V N | 4-star rated FM
Fund Manager | 26 yrs Experience | 19 yrs at current firm
Past Experience: Unifi (Corporate Finance), ICICI Bank (Credit Manager), PWC (Article Assistant)
Saravanan has been with Unifi for over a decade, with primary responsibilities of tracking pharmaceuticals, NBFC, and domestic debt markets. He has a specific specilisation in debt securities and identifying arbitrage opportunities.
