ValueQuest Scale Fund
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of ValueQuest Scale Fund
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
ValueQuest Scale Fund can be considered for investment given the strong credibility of the AMC, which has demonstrated a solid track record in the past, along with the encouraging performance of its first series. However, a few considerations warrant caution: (a) the fund has a relatively long tenure, with a base duration of 8 years and two potential one-year extensions; and (b) exit outcomes may be significantly influenced by prevailing market conditions at the time of exit, which could impact overall returns.
Strategy
Pre-IPO Investment Opportunity
Fund's Strategy View
ValueQuest Scale Fund is a Category II AIF focused on growth and late-stage opportunities in scalable Indian companies. While the strategy is sector-agnostic, it leans toward two thematic clusters: the Classic Economy, encompassing Consumer, Pharmaceuticals & Healthcare, BFSI, Niche Industries, and Manufacturing; and the New Economy, which includes Energy Transition, Technology, and Digital-first businesses. The fund seeks to back businesses with strong growth visibility and scalable models, typically targeting an exit via IPO within a 3–4 year investment horizon.
Fund Performance
Performance is highly based on power law, where a handful of investment make up for majority of returns. Network and ability to source deals is a key aspect of unlisted returns.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| ValueQuest Scale Fund |
Performance as of: 31-Jan-26
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.
IME's Review of ValueQuest PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
Upgrade | Upgrade | Upgrade | Upgrade |
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.
PMS Background
ValueQuest was co-founded in 2010 by Ravi Dharamshi and Sameer Shah. Ravi Dharamshi brings over two decades of investing experience, having worked at RARE Enterprises across research and private equity, while Sameer Shah has over 20 years of experience across business development roles at FCH Centrum, BRICS Securities, and Sharekhan. Over time, ValueQuest has scaled into a well-institutionalised PMS with three fund managers, a 10-member research team with domain expertise, and a dedicated operations and distribution setup.
Investment Team: Fund managers retain discretion over their strategies but operate as an informal investment committee, with ideas discussed collaboratively. The team is supported by senior and associate analysts, enabling deep, bottom-up fundamental coverage.
Investment Philosophy
ValueQuest follows a high-conviction, growth-oriented investment philosophy focused on identifying scalable businesses with durable competitive advantages, strong management quality, and the ability to compound earnings over long periods. Portfolios are constructed with a clear bias towards business quality and growth durability over near-term valuation comfort.
Core Framework
- Opportunity Size: Large addressable markets, longevity, predictability, scalability
- Competitive Advantage: Moats via brand, IP, regulation, cost structure, networks
- Scalability & Sustainability: Replicable models, adjacency expansion, tech adoption
- Management Quality: Execution capability, disciplined capital allocation, alignment
- Asymmetric Risk–Return: Operating leverage, S-curve growth, numbers vs narrative
Portfolio Style: ValueQuest typically runs concentrated portfolios of 8–12 companies, focusing on leaders or strong challengers in scalable sectors with high governance standards.
Investment Process
The investment process blends top-down context with bottom-up stock selection, using filters as a starting point while final decisions are driven by deep fundamental research.
Filtering Framework
- Universe: 500–600 companies screened for balance-sheet strength, management quality, positioning
- Focus List: 150–200 companies filtered on growth drivers, market-share gains, improving P&L
- Core Research: 30–50 companies with favourable risk–reward and margin of safety
Research Orientation: High emphasis on proprietary research, forensic accounting, channel checks, and scuttlebutt, with depth and differentiated insight preferred over broad coverage or checklist-driven desk research.
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