ValueQuest Growth
ValueQuest PMS | Equity | | PMSIME's View on ValueQuest Growth
Strategy
Investment Fund
A combination of a strong investment team, a decades track record, a clearly defined investment philosophy and a high level of concentration make this a good option for investors seeking concentrated exposures in mid & small-caps.
Fund's Strategy View
ValueQuest Growth takes concentrated positions (8-12) in companies where they see strong growth over 3-5 years. This is typically a buy-and-hold approach in companies & sectors where they see strong growth potential. The high levels of concentration, can lead to a high level of performance volatility, making it more suitable for aggressive investors.
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 has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
IME's View on ValueQuest PMS
View on AMC
ValueQuest is a founder-managed PMS provider with an experienced fund management team and a strong 10-year track record. The AMC leverages the Dharamshi families much longer-term track record spanning multi-decades in the broking business.
AMC's Pedigree
ValueQuest has a 10-year track record of outperformance in their 'VQ - Growth' strategy, establishing themselves as a credible PMS player. The founder-managed portfolio provides consistency to the investment philosophy and processes.
AMC Team
ValueQuest AMC is managed by 2 experienced fund managers, Ravi Dharamshi, and Sameer Shah, along with 10 research analysts. Ravi Dharamshi is from RARE, and Sameer Shah is from FCH Centrum, BRICS Securities, and Sharekhan.
Investment Philosophy
ValueQuest's strategy focuses on investing in businesses with sustainable advantages and large opportunity sizes, where the team has an informational or analytics advantage. The firm runs a highly concentrated mandate companies, with a bias towards mid and small cap. Fund managers have discretion in managing their strategies within the ValueQuest investment philosophy framework.
VQ Growth Strategy
ValueQuest Growth is a concentrated multi-cap strategy with an investment horizon of 3-5 years for companies. Focus is on absolute returns driven by fundamentally sound companies as per ValueQuest framework.Investment Philosophy
FRAMEWORK
- Opportunity Size: driven by rich in possibilities, high earnings growth, longevity, predictability and scalability
- Competitive advantage: through networks, IP, regulation, brand, cost structure and switching cost
- Scalability & Sustainability: driven by replicability, market adjacencies, technology adoption, and reach
- Management: look for competent management and efficient capital allocators, with aligned interests
- Asymmetric Risk-return: through operating leverage, S-curve, and numbers vs narrative
Investment Process
- Top-down Approach: Supportive macros, improving competitive positioning and developing business tailwinds
- Bottom-up Approach: Proactive management, strong balance sheet, and attractive risk-return
FILTERS
- Universe: 500-600 companies based on quality filter through balance sheet strength, management capabilities and competitive positioning
- Focus Companies: 150-200 companies based on growth filter drive by industry tailwinds, increasing market share, improvement in P/L and balance sheet.
- Core: 30-50 companies with favourable risk-reward, perception with market and margin of safety
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| ValueQuest Growth | -13.7 | 18.7 | 24.5 | 17.4 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 11.7 |
| Alpha over Broad Mkt BM | -7.1 | 4 | 5.3 | 5.7 |
| Nifty Midcap 150 | -5.7 | 21.8 | 26.6 | |
| Alpha over Category BM | -8 | -3.1 | -2.1 |
Performance as of: 30-Sep-25 | Inception Date: 08-Oct-10 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Ravi Dharamshi | 4-star rated FM
Co-Founder and Portfolio Manager | 23 yrs Experience | 19 yrs at current firm
Past Experience: Analyst (RARE Enterprises)
Ravi Dharamshi is the Founder & CIO of ValueQuest Investment Advisors. He has an MBA in Finance from McCallum Business School, US. He returned from the US after a brief internship stint at Salomon Smith Barney. He has been associated with the Indian stock markets for over 21 years. After graduating, he worked his way up through the stock market business, spending four years at RARE Enterprises under the aegis of Rakesh Jhunjhunwala and Utpal Sheth, where he was involved with in-depth research and private equity deals.
Sameer Shah | 3-star rated FM
Co-Founder and Portfolio Manager | 26 yrs Experience | 17 yrs at current firm
Past Experience: Head Business Development (Centrum)
Sameer Shah is the Co-Founder and Portfolio Manager of ValueQuest. He holds a Chartered Accountancy degree with over 22 years of capital markets experience. Previously, he was vice president of business development at FCH Centrum, BRICS Securities, and Share.
