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Valentis Multi-Cap

Scheme Rating

IME Scheme Rating

4 of 5 stars

Investors with strong value preference could look at the fund: Amongst value-oriented strategies, we like Valentis’ strong value focus and Fund Manager’s experience.

IME Strategy Rating

3 of 5 stars

Multi-cap Value Strategy: 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.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Valentis Multi-Cap

Type: Mid & Smallcap | Value | AUM ( cr) | Inc Date (08 Oct 2018)

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.

Constantly monitoring growth parameters including volumes & price as well as valuation monitoring to ensure risk-return trade-off 

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 35.3 25.6 20.1 23.48
S&P BSE 500 TRI 39.5 19.5 19
Alpha over Broad Mkt BM -4.2 6.1 1.1 23.5
Nifty 500 38.4 18.1 17.5
Alpha over Category BM -3.1 7.5 2.6

Performance as of: 28-Feb-23 | Inception Date: 08-Oct-18

Fund Managers

Jyotivardhan Jaipuria | 5-star rated FM

Founder and MD | 38 yrs Experience | 9 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.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% fixed + 15% above 10% hurdle
Exit Fees1yr(3%), 2yr(2%), 3yr(1%)

AMC

AMC: Valentis PMS (click link for detailed AMC review)

Highly recommended for aggressive investors looking for Multi Cap strategies with Small Cap bias: Valentis PMS has the ingredients to emerge as a strong niche PMS provider. The strong research pedigree of its founder (even as his fund management experience is relatively recent), along with a strong focus on value investing, makes this a decent option for investors seeking to invest in value stocks.

AMC Rating

4 of 5 stars

AMC Pedigree

4 of 5 stars

AMC Size

3 of 5 stars

Team Pedigree

4 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

4 of 5 stars

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