About

Valentis Advisors Pvt Ltd (formerly known as Veda Investment Managers Pvt Ltd) was founded by Jyotivardhan Jaipuria in 2015 after his 21 year stint with DSP Merrill Lynch to offer investment management services. They obtained a Portfolio Management Services (PMS) license from SEBI in 2016. Their core offering is discretionary PMS services but they also offer non-discretionary PMS and advisory services.

They are a research focused firm that endeavors to provide long term capital appreciation by investment in under-valued growth companies. They try to invest in companies that offer an asymmetric return for the risk they take.

Key staff

Jyotivardhan Jaipuria, founder and MD, has an overall 32 years of experience in the Indian Capital Market including 21 years in DSP Merrill Lynch and 8 years in ICICI. He was Head of Research and strategist for India at Bank of America Merrill Lynch. He helped build the research team as the leading research provider in India as well as one of the top institutional brokers in the country. He also served as a member of the Board of Directors of DSP Merrill Lynch, the Asia Pacific Research Executive Committee and Operating Committee, the India Country Leadership Team (CLT) and other management committees.

Siddharth Teli, Associate director – investment, has been a research analyst primarily tracking the Banking and Financials’ sector for the last 19 years. His last assignment was with CIMB Securities/Incred Capital–he has previously worked at Religare (Head of Research), ICICI Securities, ENAM Securities and Reliance Mutual Fund. He has completed his MMS from Mumbai University and has graduated from NM College of Commerce and Economics.

Investment philosophy

Research, research and more research drives our long term fundamental investment philosophy. We focus on stocks that are at an “inflection point” in the earnings cycle. However, we are not willing to pay exorbitant valuations for growth. GARP (Growth at a reasonable price) is our motto. We prefer to buy early rather than when stocks are a consensus. We follow a 3 “U” philosophy – buy Under-valued, Under-performing and Under-owned stock. We buy and hold for the long term. Our portfolio churn is very low.

Media

Creating sustainable risk-adjusted alpha in small caps, Feb 25, 2023, pms aif world, https://youtu.be/zxE48_pFjKU 

In this interview, Mr. Jyotivardhan, founder and MD, shares his views on their investing approach. He says that founders themselves and their families invest in the same funds. They generally don’t prefer to hold cash but in some extreme cases where valuations are high, they might sell stocks and hold cash.

He shares that they’ll conduct rigorous research before investing. They do process driven research to eliminate market noise. They have a 3 U’s approach – undervalued, underowned, underperforming or undiscovered. They look for stocks with large discrepancies in risk reward, in other words  they look for stocks where returns are disproportionately high for the risk they take. They also look for characteristics like strong corporate governance, competitive advantage for the company, attractive industry dynamics etc. 

He explains how they filter stocks. From a range of 500 – 600 stocks, they narrow down to 80 – 100 based on macro analysis and bottom up quantitative approach. They further narrow down down to 15 -20 stocks based on company management meetings, meetings with suppliers, distributors, competitors, also based on research and modeling and based on 3 U’s. Based on that they construct a portfolio.

Minimum weight given to any stock is 5 -7% and maximum weight is 20%. Maximum weight assigned to any sector is 40% and maximum weight for any 2 sectors is 60%.