Equirus Capital, an investment bank in operation for nearly eight years, is set to offer Portfolio Management Services (PMS) area and is targeting asset under management of $100 million in couple of years. FeMoney spoke to Viraj Mehta, Fund Manager, Equirus PMS, to know his views on investment and markets.
When do you plan to offer PMS services and what is the typical profile of your clients?
We will launch our PMS Services very soon. Our investors would be Ultra High Net-worth Individuals (U-HNIs) who needs help with Equity portfolio.
What is the USP of the investing strategy of Equirus PMS?
Our focus will be on taking concentrated bets for the long term, in high quality publicly listed Indian companies at reasonable valuations. As investment managers, our primary goal is to generate significant outperformance of the broader Indian indices over a 3–5 year period. Equirus PMS Investment philosophy is based on the synergies of value and quality. We intend to invest in relatively undiscovered businesses with long growth potential.
What is the level of asset under management (AUM) you are targeting?
Our target AUM is $100 million. We expect to reach our target in next 1-2 years.
Where do you see the equity markets heading from here?
We see significant wealth creation opportunities in Indian equity markets over next 5-7 years. While benchmark indices would do reasonably well, we see significant earnings growth in certain pockets over next couple of years leading to outsized returns.
What are the factors that would impact the market from here on?
We believe the most important factor to drive Indian stock market over next 1 year is earnings growth in a strong demand recovery environment led by good monsoon and public sector payouts. We see decent recovery in earnings growth over medium term leading to stock returns. Other factors to affect Indian markets can be significant rate hike in US. But we see very little possibility of the same.
What are your preferred sectors and stocks?
We strictly follow bottoms up approach and all companies have to clear our careful and detailed checklist. This approach means we can consider a broad range of securities investments across market capitalisation. Having said that, as a house we see value in select auto, pharmaceutical & textile companies.