Funds managed
| Fund name | Asset Class | License |
| Equity Intelligence AIF Trust | Hedge fund | SEBI AIF Cat 3 |
Other licenses could be PMS
About the AMC
- Founded in 2002
- Performance of EQ India AIF in its first year of operation (Jul-17 to Mar-18) was 13.28% and for second year (FY19) was -25.22% vs Nifty returns of 0.93% and 14.93% respectively
- Fund Manager – Porinju Veliyath
- About Fund Manager – At first he worked 4-years at Kotak, then he joined Parag Parikh securities as a research analyst and fund manager, He then started making investments on his own for the wealth creation and finally started his portfolio management firm ‘Equity Intelligence’ in 2002.
Investment Philosophy (for firm)
Small cap investors believe that if the business is good, investors should not care much about the market capitalization. Most of the companies in his portfolio do not pass muster with large institutional investors, however, has given him multiple times returns. The Porinju Veliyath stock portfolio consists mostly of lesser-known stocks.
Our key objectives are, first, to protect your capital, and second, to see it grow at a healthy rate. In order to fulfill these objectives, we strive to build up a portfolio of stocks carefully chosen through a focused and disciplined approach. We are not market timers trying to predict the tops and bottoms of the market, nor do we fancy chances of making money in current “hot” investment ideas. We simply strive to buy something for fifty paisa, which is worth a rupee. Broadly the strategy is to acquire equities of strong and profitable businesses run by smart and credible managements at market prices well below what we feel is its intrinsic worth. Besides searching for values in marketplace, we use our market intelligence and feedback network to constantly search for “Catalysts” and “Red Flags” to buy and sell stocks. We feel this is our core strength and has been the key driver in superior performance in not just beating the Sensex and Nifty but by beating the indices by a mile. The firm is not a market timer to predict the tops and bottoms of the market, nor do they fancy chances of making money in current ‘HOT’ investment ideas.
Investment Process
Our ideas are generated from myriad sources including corporate managers, various journals, corporate databases, our own screens and interactions with knowledgeable market sources. In short, our market intelligence is on a par with the best in the business. Once our exploration leads us to a few interesting stock ideas, we begin the analytical work to determine their intrinsic value. The process usually requires numerous interfaces with the companies and market professionals. This appraisal facilitates a thorough understanding of the fundamentals of the stock, leading to highly rewarding investment decisions.
About Alternative Investment Funds of Equity Intelligence
For ultra HNIs who are able to invest more than 50 lac at a glance for them, equity intelligence has their alternative investment fund. This product was launched with an aim to capture the emerging opportunities from the Indian stock markets. Porinju Veliyath is well known for his capacities to pick the right businesses having huge potential. And the same strategy has been implemented in this product. Equity intelligences alternative investment fund focuses on turnaround stories and emerging opportunities.
Minimum Investment & Fees of Equity Intelligences Alternative Investment Funds
Equity intelligence minimum investment requirement for Alternative Investment Funds is Rs.1 crore. Though it’s a high investment bet but investors get definite returns in these investments. The fund has already given returns of 13.28% in the first operational year which is far better than Nifty performance. As per equity intelligence website information we don’t see any profit sharing and performance fees for these investments. So, AIF scores over PMS in the product basket but affordability remains the issue for normal investors.
Media
Equity Intelligence to collect Rs 300 crore from category III AIF, ET now, Jun 20, 2017
Major portfolio management firm Equity Intelligence plans to collect Rs 200 to 300 crore in the next few months under category III alternative investment fund (AIF) for which it has recently received license from SEBI. It is the first company in Kerala to receive the license for AIF, which is broadly the Indian equivalent of hedge funds abroad.
Equity Intelligence MD Porinju Veliyath reckons AIF being a fancied medium of investment for high net worth individuals (HNIs) can grow bigger than mutual funds in the coming years. The company recently achieved an important milestone of Rs 1000 crore assets under management.
SEBI License to launch, Hindustan business lines, June 20, 2017
Equity Intelligence, the leading portfolio manager, has received a SEBI license to launch a Category III AIF (Alternate Investment Fund), which is broadly the Indian equivalent of hedge funds abroad. The company has achieved the milestone of ₹1,000 crore in Assets Under Management. With a customer base of 1,350 investors, the company has delivered 32.76 per cent to investors for 14 years on an average.
Alpha Moguls with Porinju Veliyath, Dec 14, 2017
https://www.youtube.com/watch?v=ZvtmEsurgyk
India is a large cap economy and is still on a growing path, increasing per capita income of people and rising economic growth and visibility. Talking about valuations of stocks, Due to governments change in policy valuations were fluctuated and keep on fluctuating due to various factors. So valuing stocks as per benchmarks is not the right method to calculate value of stock. As equity reflects the future earning potential
Analyst questions –
- What kind of stocks would you suggest to retail investors and why?
- Is there any particular ideology for picking stocks that aren’t much popular and if yes, then how do you think that one should pick unpopular stocks?
- If we were to summarise your investment philosophy in one line, can it be said that you follow the ‘Buy and Hold’ strategy with decently required tactical deviations?
Prepared by – Taniya Nagpal
Peer reviewed by – Ridhima Jaisinghani
Date – 12th May
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