|Care growth plus value||Small and Mid cap||PMS|
About the AMC
- Care PMS was founded by Arpit Shah in 2007
- Fund obtained SEBI registration to serve as a Portfolio Manager in year 2011 and started offering services to clients.
- They manage assets under management of INR 235 crores spread across 689+ clients (Including NRIs).
- Focused only on one asset class i.e., equities
- Offering 100% variable fees structure. Charge fees only if there is growth in portfolio value. There is zero upfront or set-up fee and zero fixed annual fees
- Care PMS does not have or created any specific Strategy model to invest funds. In fact, the company invests the fund of a client when it comes in their hand and after searching the appropriate opportunity at that point of time in the market (according to the client’s need and objective) fund is invested by the experts
- Generally invest in companies with time horizon of more than 10-12 quarters. Though, there is no lock-in period
- Arpit Shah (Investment Director): He is founder director of the company and a CA by qualification. He has over 12 years of secondary capital market experience. His role includes research and portfolio management.
- Amit Doshi (Investment Director): He is CA by qualification, after working with Big 4 (PwC), joined the core team in 2010 to take the company to its well-deserved position. His role includes research and portfolio management activities.
- Jayant Mamania (Investment Director): He is key personnel of the investment team. His stock picking ability makes Care PMS a distinct portfolio manager. He heads the investment team and has over 20 years of experience in equity investing. He is a CA by qualification.
Investment Philosophy (for firm)
To partner in a business by investing in equities and reap the benefits over a long period in form of value appreciation which are backed by growth in businesses.
Bottom-up, Stock specific approach
- Shortlisting of companies on ongoing basis (on any fundamental trigger) or during quarterly earnings season (after applying Care PMS proprietary quant screeners) for detailed analysis.
- Extensive fundamental research undertaken on shortlisted stocks and their peer group to spot trend or turnaround in that segment or industry.
- Take account of recent developments in that segment or industry and meet industry participants across the value chain and to confirm inferences.
- Decision to add a company or to replace and existing company taken only after consensus among all three investment directors.
- Detailed analysis about company’s strategies, management’s execution capabilities and on pedigree of management followed Q & A with management or investor relations
Stock selection is done after analysis of financials and due diligence as per Care PMS investment criterion. Generally, we invest only in dominant player in a segment
Portfolio construction is done to comply with controls such as individual stock exposure and sector exposure limits are observed. Diversify between growth ideas, turnarounds and value buys
Portfolio review includes quantitative review of portfolio holding, supervision and monitoring to align portfolio with investment team directives
Exit is warranted when stock price appreciates to its fair value or reaches our target or when there is a change in business fundamentals. Replacement is warranted on Exit of an existing portfolio company or availability of an alternate investment with superior fundamentals and valuations
- Partial Profit Booking– when there is price rise on account of euphoric environment not backed by fundamentals.
- Portfolio Re-balancing– when the weight of individual stocks or sector within the portfolio goes above limits, we may consider shaving off the weight of a certain company in the portfolio.
- Shift to better opportunities– research is a continuous process which result in new shortlisted companies. When an alternative with better prospects is found, an existing portfolio company may be replaced.
- Fundamental Deterioration– Exit is warranted when there is a change in fundamentals of the company due to which earnings expectation is revised downwards
- External / Macro Dynamics– Exit is warranted when there is a change in macros in which company operates due to which earnings expectation is revised downwards
- Price reaches fair value– When earnings grow to a level as envisaged and reach fair value post which earnings plateau.
- You founded care pms in 2007 and got license in 2011 ,why there was so much delay?
- How you are able to distinguish your services with your competitors in the industry , what is the USP of your services ?
- There is no fixed fee involved with your services so how do you manage profitability in times of down swing or recession ?
- What is your sector allocation strategy ? how do you balance in between growth and value ?