Value Quest Growth PMS

Question 1

About Value Quest

Answer 1

ValueQuest was co-founded by Ravi Dharamshi and Sameer Shah in 2010.
The flagship strategy “ValueQuest Growth” was launched in Oct 2010, and it has a ~14-year track record.
AMC currently manages an aggregate AUM of ₹16,759 Cr.
AMC also manages large global/Institutional mandate. Institutional AUM comprises more than 50% of total AUM.

Key Investment Team members
Ravi Dharamshi (CIO):
He is the Founder and Chief Investment Officer at ValueQuest AMC.
He has over 23 years of experience.
He is responsible for developing, implementing, and maintaining portfolio strategies and processes.
He is managing ValueQuest Platinum PMS since inception.
Sameer Shah (Fund Manager):
He is the Co-founder and managing ValueQuest Growth since Oct 2010.
He has 23 years of experience in equities and previously, has worked at Sharekhan in various capacities.
He was also instrumental in growing retail business at FCH Centrum as well as BRICS Securities as Head - Business Development.

Question 2

The Strategy

Answer 2

Investment Strategy
Strategy emphasizes on investing in fundamentally sound, well researched companies having bright future prospect, irrespective of market capitalization.
The aim is to maximize power of compounding. Its philosophy is to pick high quality companies with proven track record at reasonable valuations.
It is a concentrated portfolio of maximum 8-12 stocks with focus of absolute returns over rolling 3-5 years’ time frame

Investment Framework – S.C.A.L.E Framework
* Scalable Companies: Large Addressable Market, Demand Tailwinds, Scalable Companies and Good governance structure
* Competitive Advantage: Intellectual Property, Unique brand value, Vast Distribution, Cost Leadership
* Adaptive: Ability to withstand economic slowdowns, Product building capacity, Service market adjacencies and Sustainability
* Long runway: Favourable Industry tailwinds, Multiple growth engines, Aligned Demographics and Urbanization
* Execution: Strong performance track record, High quality management, Capital efficiency and Good working capital management

Question 3

Stocks & Sectors

Answer 3

Top 10 Stocks

1. ICICI Lombard General Insurance 8.5
2. Concord Biotech 7.1
3. TBO Tek 6.9
4. R R Kabel 6.9
5. ICICI Bank 6.6
6. 360 One WAM 6.4
7. Prince Pipes and Fittings 6.2
8. Venus Pipes and Tubes 5.7
9. Polycab India 5.5
10. Cholamandalam Investment 5.5

Top Sectors

1. Building material 21.2
2. Pharma 17.1
3. Bank / NBFC 16.8
4. Financial Services 16.3
5. Capital Goods 9.7
6. Technology 8.6
7. Chemicals 3.6

Question 4

About Portfolio

Answer 4

1. No of Stocks 8 - 12
2. Weighted Average Market Cap (in Rs. Cr.) 96,014
3. Median Market Cap (in Rs. Cr.) 24,215
4. AUM (in Rs. Cr.) 1,910
5. AMC AUM (in Rs. Cr.) 16,759

Risk Parameters (3Y)/Portfolio BSE 500 TRI

1. Beta 0.83/1.00
2. Standard Deviation 15.4%/13.3%
3. Sharpe Ratio 1.04/1.00

Benchmark S&P BSE 500 TRI
Portfolio Manager Mr. Sameer Shah
Minimum Initial Investment Amount Rs 50 lacs (Transfer of entire minimum amount should happen in one day)
Minimum Add-on Investment Amount Rs. 5 Lacs and above
STP Option Minimum Top-up for both Existing & New Clients Rs 50 Lacs
Immediate Deployment 20% of Top-up amount
Rest 80% Deployment Starting subsequent month, 4 switches of 20% each, on 15th of each month.
NRI Eligibility NRIs can invest on a case-to-case basis and in consultation with fund house
US and Canada based NRIs are not allowed to invest.
Management Fee Structure* Fixed Fee – 2.5% p.a.
Exit Load 1% up to 3 Years; Nil thereafter

Question 5

Scheme Performance

Answer 5

Absolute Returns (%) CAGR (%) CY Returns (%)
1M 3M 6M 1Y 2Y 3Y 5Y S.I. CYTD CY23 CY22 CY21 CY20 CY19
ValueQuest Growth 3.8 15.4 23.6 40.5 37.9 23.7 35.6 19.7 21.0 56.7 -5.0 62.7 39.4 -8.0
S&P BSE 500 TRI 4.4 12.7 19.6 38.9 27.6 21.0 22.5 13.7 21.9 26.5 4.8 31.6 18.4 9.0