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Valentis Rising Star Opportunity

Scheme Rating

IME Scheme Rating

5 of 5 stars

Good Option for Investors looking for mid and small-cap focused strategy: The strategy has worked well since inception. The strategy’s aim to identify companies that are undervalued, underperformed, and under-owned fit well in the mid and small-cap space to find multi-baggers. Valentis Rising Star managed by Jyothivardan Jaipuria is truly a value-oriented strategy.

IME Strategy Rating

5 of 5 stars

Small and Mid Focussed Value Strategy: Valentis ‘Rising Stars Opportunity’ is a small & mid-cap focussed value strategy. The strategy has categorically defined and focuses on the 500-10,000 cr market cap companies. Valentis follow a 3 “U” Philosophy – aiming to buy stocks that are undervalued, underperforming and under-owned. Strong value focus (undervalued, underperforming & under-owned stocks) is a core differentiator and is 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 Rising Star Opportunity

Type: Small Cap | Value | AUM ( cr) | Inc Date (30 Sep 2016)

Investment Philosophy

Valentis ‘Rising Stars Opportunity’ is a small & mid-cap focussed value strategy. The strategy has categorically defined and focusses on the 500-10,000 cr market cap companies on the back of very low FII presence in the same.

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.

INVESTMENT PROCESS

  • Search Strategy (from 500-600 company universe): based on macro approach (through global indicators, macroeconomic analysis and industry analysis) along with bottom-up qualitative approach screening for reasonable valuation, history of earnings growth & return ratios, and debt gearing & free cash flows.
  • Fundamental Research (80-100 companies): this step covers due diligence (management meetings, porter analysis, meetings with competitors, and value chain), research and modeling, and the valentis’ 3 Us
  • Portfolio Construction (15-20 companies): constant monitoring of growth parameters and valuation parameters to ensure risk-return trade-off.

Trailing Performance

1yr 3yr 5yr Since Inception
Valentis Rising Star Opportunity 40.3 43.6 26.4 21.23
S&P BSE 500 TRI 39.5 19.5 19
Alpha over Broad Mkt BM 0.8 24.1 7.4 21.2
Nifty Smallcap 250 67.7 29.7 25.2
Alpha over Category BM -27.4 13.9 1.2

Performance as of: 28-Feb-23 | Inception Date: 30-Sep-16

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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