Archer Capital

Funds managed

Fund nameAsset ClassLicense
Archer India Growth FundEquity – Long OnlySEBI AIF Cat 3

About the AMC

  • Archer Capital was founded by Parth Patel in April 2018.
  • He is the chief architect and the key driving force behind the strong risk management and research capabilities of the firm. He is a CFA Charter holder from CFA Institute, USA. He graduated with a B.B.A. (Hons.) in Finance from Heriot-Watt University, UK. With almost a decade of experience in the Indian equity markets, he has a solid understanding of fundamental analysis and derivatives strategies. He is also actively involved with Rotary International.

Since inception, their mission has been to help clients achieve their financial objectives and to serve them with integrity. They have a fiduciary duty to their clients to preserve and add value to their investments. They accomplish it by focusing relentlessly on their long term performance capabilities and by staying true to the objectives of the investment strategies

Change in economic and business environments is increasingly rapid. They meet these changes with robust policies and processes. We’ve built expertise across multiple asset classes, from fixed income and equities to directly owned real estate and alternative-strategies designed to support a wide range of client needs.

Over the years, they have developed a comprehensive investment process, which ensures that they remain true to their investment philosophy. This process dictates how they analyses a potential new investment and when they sell a current holding

Their strength lies in their differentiated investment criteria, the rigor with which they apply this criteria, the disciplined and repeatable nature of their investment process, and the quality of their investment team.

Investment philosophy

They seek to protect and grow capital over full market cycles through investment principles that are consistently applied across each of our investment strategies.

Capital Preservation Focused:

They view risk as the likelihood of sustaining a permanent capital loss on any investment, rather than market volatility.

Value-Based Approach:

They believe that the best way to protect and grow capital is by owning undervalued investments. They always seek to invest with a margin of safety to mitigate downside risk.

Bottom-Up Fundamental Research:

The investment team conducts in-depth, fundamental research on each investment. They insist on knowing exactly what they own and why they own it.

Long-Term Perspective:

The business structure and the stability of the client base allow them to take a long-term perspective when making investment decisions. They are patient investors and not market timers.

Focus, Discipline and Patience:

They will only commit capital to investments that meet their strict investment criteria.

They invest in the following asset class: EQUITIES, DERIVATIVES, FIXED INCOME

ALTERNATIVES

In order to create an effective and customized investment strategy, they integrate their knowledge of investor’s investment objectives and risk tolerances with the realities of current market conditions and asset class expectations.

Over time and through varying market swings, they work closely with investors to ensure that investors remain committed to their long-term goals and that investment strategies remain appropriate in the context of evolving needs.

Capabilities

  1. Equities : 

Archer’s rigorous analysis sets them apart from other investment managers. Through the years, the management team has gained a rare ability to see potential where others don’t and to avoid investment traps that intrigue others.

The key to success is that they do not invest in markets or sectors, but in individual securities. They build their portfolios one stock at a time, using careful, fundamental analysis. Every single stock has to earn the right to be included in our portfolios.

The returns a company generates on every rupee invested measures how effectively that company is putting its shareholders’ capital to work. Assessing this financial productivity is an important part of our research process, as it is crucial to their assessment of a company’s value.

Portfolio Management

Growth & Value Investing

Equity Funds

Index Funds

ELSS Funds

  1. Fixed Income:

Their experienced team works with a vast array of fixed income securities to help investors increase their capital, generate regular income, enhance portfolio returns and manage their liquidity.

Their breadth of experience and pan-India coverage allows them to develop customized solutions that meet specific client needs for every timescale. And they have access to a wide range of tools: from cash instruments through to derivative overlays, allowing them to implement their ideas quickly and efficiently.

Cash Management Services

Tax-free Bonds

Corporate Bonds

PSU Bonds and G-Secs

Debt Funds

Fixed Maturity Products

Short, Intermediate and Long Duration Strategies

  1. Derivatives:

They have been successfully executing options-based strategies since 2008. All trades needs to pass their strict risk-return payoff requirements, ensuring a consistent focus on risk management. Risk is actively monitored at the portfolio level.

Their strength lies in the rigorous research and risk analytics they have done over the years, and in the experience they have accumulated in this niche segment. Their strategies have proven to be very successful under varying market conditions, even during times of extreme market volatility

Options-based Strategies

Structured Products

Hedging Solutions

Volatility Trades

Currencies

  1. Alternatives: 

Incorporating alternative investments into a traditional portfolio may help investors to reduce overall risk by increasing portfolio diversification.

To complement traditional investment portfolios, Archer offers qualified investors access to these alternative asset classes:

Pre-leased Real Estate

REITs

Private Equity Funds

PIPE Funds

Venture Capital

Project Financing

Analyst questions

Q1) During times of crisis, investors have always looked to assets with high intrinsic value to safeguard their portfolio and ensure they do not lose wealth to a market crash or recession. Will the alternative assets help diversify the portfolio? Did alternative assets shield investors against Covid-19 volatility since there was broad-based selling across asset classes like equities as risk aversion spiked.

Q2) The term “alternative investments” typically invokes anxiety on the part of investors. It calls to mind headlines about overleveraged hedge funds, private equity funds saddled with illiquid assets. Why is that? How can the alternative investment industry as a whole overcome this?

Prepared by Rishabh

Reviewed by Rashika Bhatia

Date: 12th May 2020

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