Valentis Multi-Cap

Investment Strategy

Valentis Multi-cap PMS follows a growth-with-value orientation, aiming to benefit from an earnings cycle recovery by constructing a dynamically balanced multi-cap portfolio. The strategy typically maintains 20–40% exposure to large-cap stocks (top 100 by market capitalisation), providing liquidity and stability, while the remainder of the portfolio is allocated to mid-cap opportunities that are expected to be disproportionate beneficiaries of cyclical and earnings-led recoveries. The underlying thesis is that future market returns are likely to be driven more by earnings growth than valuation re-rating, with a focus on companies capable of doubling earnings over the next 4–5 years.

Sector and Earnings Focus

Sector selection is guided by earnings visibility and cyclical recovery potential, with emphasis on areas such as corporate banking, capital goods, commercial vehicles, agro-chemicals, and segments benefiting from structural or regulatory shifts, including GST-driven formalisation (e.g., ceramics) and relief from raw material price pressures (e.g., plastic processors and tyre manufacturers).

Investment Process

The investment process begins with a broad universe of 500–600 companies, from which stock ideas are generated through a combination of top-down and bottom-up analysis. This funnel is progressively narrowed through multiple analytical layers to arrive at a high-conviction portfolio.

• Macro Framework: Monitoring global indicators, macroeconomic trends, and industry-level dynamics to identify favourable environments for earnings recovery.
• Bottom-Up Quantitative Screening: Filtering for reasonable valuations, consistent earnings growth, healthy return ratios, manageable leverage, and sustainable free cash flow generation.
• Due Diligence: Engaging with company management, competitors, suppliers, and distributors, alongside industry structure analysis.
• Research and Modelling: Building detailed financial models and assessing management execution track records.
• The 3 “U”s Framework: Evaluating companies across valuation metrics (P/E, P/B, DCF, ROE, free cash flow), ownership structure (FII and mutual fund holdings), and market understanding.

Post-investment, holdings are continuously monitored for growth drivers such as volume and pricing trends, alongside valuation discipline to maintain an appropriate risk–return balance.

Key Tenets

• Private Equity–Style Investing: Emphasis on identifying under-researched or undiscovered companies through deep fundamental work on industry structure and company positioning.
• Idea Generation: Combination of macro inputs and bottom-up quantitative screening across a wide initial universe.
• Progressive Filtering: Narrowing the universe to 80–100 companies using the 3 “U”s framework.
• Portfolio Construction: Final portfolio of 15–20 stocks selected based on intensive due diligence, management evaluation, and detailed financial modelling.

AMC Background

Valentis Advisors PMS was founded in 2016 by Jyotivardhan Jaipuria (a seasoned & respected ex-DSP ML fund manager). Seasoned Equity Strategist runs the AMC Valentis PMS is still young but has all the key ingredients to emerge as a credible niche PMS player. Its founder-cum-CIO, Jyotivardhan Jaipuri , is a seasoned & respected equity strategist and they have a clearly defined and differentiated investment philosophy. Jyotivardhan Jaipuria is a highly seasoned equity strategist (having worked at DSP Merrill Lynch for over 2 decades), but his experience is more as an equity strategist with his longer-term track record of managing funds yet to be established.

Investment Philosophy

Valentis Advisor’s follow a 3 “U” Philosophy – aiming to buy stocks that are undervalued, underperforming and under-owned. There is a strong research focus, with an aim to make long-term investments in stocks that are at an ‘inflection point’ in their earnings cycle. Valentis is not willing to pay exorbitant valuations for growth. GARP is their motto. Clearly Articulated Value Focussed Strategy Strong value focus (undervalued, underperforming & under-owned stocks) is a core differentiator and is well articulated. A focus on under-owned & under-recognised stocks, does indicate a small-cap bias which is clearly seen in their strategies. Suitable For Suitable for investors seeking a strong value focussed fund (undervalued, underperforming & under-owned stocks).