Valentis Multi-Cap
Valentis PMS | Equity | | PMSIME's View on Valentis Multi-Cap
Strategy
Investment Fund
Amongst value-oriented strategies, we like Valentis' strong value focus and Fund Manager's experience.
Fund's Strategy View
Valentis follow a 3 “U” Philosophy – aiming to buy stocks that are undervalued, underperforming and under-owned. The portfolio is positioned to have 20-40% exposure to large-cap companies outside of their typically small and mid-cap focus. Undervalued, underperforming & under-owned stocks are core differentiators and are well articulated.
Fund Performance
The fund has underperformed peers in the last 5yr trailing returns. In terms of longer-term annual performance, performance has been highly consistent, with the fund having outperformed it's benchmark in over 80% of annual calendar years.
IME's View on Valentis PMS
View on AMC
Valentis PMS is a highly credible provider with a distinct investment philosophy and FM credential. Founded by Jyotivardhan Jaipuria (a seasoned equity strategist) who has developed his fund management experience at Valentis, Valentis PMS focuses on value investing making it a good option for investors interested in value stocks.
AMC's Pedigree
Valentis PMS, founded in 2016, is a credible niche PMS AMC with a seasoned and respected equity strategist as its founder and CIO. They have a clearly defined and differentiated investment philosophy, ensuring longer-term stability in their processes.
AMC Team
Jyotivardhan Jaipuria, a seasoned equity strategist with over 2 decades of experience at DSP Merrill Lynch, founded Valentis PMS. He brings stability to the investment team, which includes a head of research, a senior research analyst, and 2 junior analysts. His longer-term track record of managing funds is still being established.
Investment Philosophy
Valentis's value philosphy is well articulated, within it's 3U (undervalued, underperforming & under-owned) Investment Framework. This strong value focus is a key differentiator and is well articulated.
Valentis Multi-cap PMS- Investment Strategy
Focus on growth & Value
Investment Strategy
- Investing as an early beneficiary of earning cycle recovery: by having 20-40% exposure to large cap companies (top 100). This enables the portfolio to be a dynamic mix of established, liquid and mid-caps that may be greater beneficiaries of cyclical rebound.
- Rationale- Earnings doubling next 4-5 years: Over the past 10 years returns have been driven by valuation re-rating with earnings rising at aggregate of 60% only. in the next 5 years they believe market returns will be driven mostly by earnings growth. Earnings growth will be robust.
- Focusing on sectors like corporate banks, capital goods, gainers from GST (ceramics), raw material price pressure (plastic processors, tyres), commercial vehicles, agro-chemicals.
Investment Process
Valentis Multi-cap investment process starts with getting stock ideas by screening 500-600 companies. This stock idea happens by following:- Macro Approach: through monitoring global indicators & markets, macro economic analysis and industry analysis.
- Bottom up quantitative approach: screening for- reasonable valuation, history of earnings growth and return ratios, monitoring debt gearing & free cash flows.
- Due Diligence: Having company management meetings, meeting with competitors, suppliers, distributors and performing porter analysis.
- Research & Modeling: Performing a detailed financial model, analyzing management's track record.
- The 3 'U's: Valuing companies based on PE, PB, DCF, ROE and Free Cash flow. With ownership of FII holding, MF holding.
KEY TENETS
- Private equity style investing: Buying unresearched and undiscovered companies through deep research on industry dynamics and company positioning.
- Stock ideas: Macro and bottom-up quantitative approach screening for reasonable valuation, earnings growth, return ratios, debt and free cash flow selecting 500-600 companies
- The 3 “U”s: Filter 80-100 companies based on valuation, ownership and analyst coverage.
- Portfolio construction: 15-20 companies based on due diligence, research on management track record and detailed financial modelling.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Valentis Multi-Cap | -14.3 | 15.2 | 21.8 | 18.3 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 16.2 |
| Alpha over Broad Mkt BM | -7.7 | 0.5 | 2.6 | 2.1 |
| Nifty Midcap 150 | -5.7 | 21.8 | 26.6 | |
| Alpha over Category BM | -8.6 | -6.6 | -4.8 |
Performance as of: 30-Sep-25 | Inception Date: 08-Oct-18 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Jyotivardhan Jaipuria | 4-star rated FM
Founder and MD | 40 yrs Experience | 10 yrs at current firm
Past Experience: Manager Director (Bank of America Merrill Lynch), Manager (ICICI Bank)
Jyotivardhan Jaipuria comes with more than 2 decades of experience. He was the Head of Research and strategist for India at Bank of America Merrill Lynch. He helped build the research team as the leading research provider in India as well as one of the top institutional brokers in the country. As a strategist, he was rated amongst the top strategists in India by leading institutional investors in India. Jyotivardhan has also served as a member of the Board of Directors of DSP Merrill Lynch, the Asia Pacific Research Executive Committee and Operating Committee, the India Country Leadership Team (CLT) and other management committees. Prior to DSP Merrill Lynch, he worked in ICICI in the Project Financing Department. Jyotivardhan graduated in Commerce (B.Com) from Sydenham College and has an MBA from the Indian Institute of Management, Ahmedabad.
