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ValueQuest Growth

Scheme Rating

IME Scheme Rating

4 of 5 stars

Good Investment Option for Aggressive Investors: 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.

IME Strategy Rating

3 of 5 stars

Concentrated investments in long-term value creators: ValueQuest Growth takes concentrated positions (typically 8-12 companies) 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 (8-12 companies), can lead to a high level of performance volatility. The concentration makes this a high-risk-reward portfolio.

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 ValueQuest Growth

Type: Mid & Smallcap | GARP | AUM (1576.5 cr) | Inc Date (8 Oct 2010)

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 36.4 21.7 27.3 18.8
S&P BSE 500 TRI 34.7 18 18 12.9
Alpha over Broad Mkt BM 1.7 3.7 9.3 5.9
Nifty Midcap 150 53 25.7 24.6
Alpha over Category BM -16.6 -4 2.7

Performance as of: 31-May-24 | Inception Date: 08-Oct-10

Fund Managers

Ravi Dharamshi | 4-star rated FM

Co-Founder and Portfolio Manager | 21 yrs Experience | 17 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 | 4-star rated FM

Co-Founder and Portfolio Manager | 25 yrs Experience | 15 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.

Fee Structure

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

AMC

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

Highly recommended for a more aggressive and concentrated investment style: ValueQuest has established its credentials as a founder-managed PMS provider, with its experienced fund management team and a strong 10-year track record.

AMC Rating

4 of 5 stars

AMC Pedigree

4 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

4 of 5 stars

Inv Philosophy

4 of 5 stars

Performance

4 of 5 stars

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