Funds managed
| Fund name | Asset Class | License |
| True Beacon | Long Bias ( long only- 65%& long short- 35%) | SEBI AIF Cat 3 |
About the AMC
- True Beacon is a equal join venture of Zerodha’s co-founders Nikhil Kamath and Nithin Kamath, founded in August 2019.
- Nikhil Kamath ,Co-Founder and Chief Investment Officer, co-founded Zerodha and Kamath Associates.
- Nithin Kamath, Co-Founder, cofounded Zerodha, also runs Rainmatter, a VC fund and incubator, partnering with innovative start-ups that are helping grow the Indian capital market ecosystem. Also serves on the advisory committees of the SEBI and various Indian stock exchanges.
- Richard Pattle, Senior Advisor, prior work experience- Vice Chairman of Standard Chartered
- Kudrat kahlon, Chief of Staff, at True Beacon, Kudrat manages operations, visibility initiatives, and client management across India and globally, prior work experience- worked in the United States at the District Attorney’s Office and in the Hague for the European Union.
- Cathy Guo, Vice President, previously, Cathy was the CEO and Co-Founder of Dunya Labs, a blockchain tooling company headquartered in Singapore, also worked on the private equity team at Blue Pool Capital.
Investment Philosophy (for fund)
Client Aligned Asset Management
- True Beacon was founded on one simple principle: to create wealth and value for those who believe in India’s Growth Future. Despite India’s positive performance as a market over the past decade, many investors domestically and globally have failed to capture significant returns due to arcane fee structures, low transparency and continued inefficiencies by fund managers — the majority of whom underperform the NIFTY and SENSEX benchmarks.
- True Beacon was conceived to change this status quo and build a firm on the pillars of Client Alignment, Technology-Enabled Transparency, and Strategic Value Creation.
Media
Title-Zerodha founders’ focus on investor returns with flat performance fee pays off, Media Platform- Live Mint, Date – Dec16,2019
https://www.livemint.com/news/india/zerodha-co-founder-launches-category-iii-aif-11576465499902.html
The Zerodha founders’ focus on ensuring high absolute returns for investors of their Category III Alternative Investment Fund (AIF), aided by a policy of charging 10% performance fee, is paying off. The AIF called True Beacon AIF One has been active for the past 3 months and is up 8.5% over that time. A Category III AIF is allowed to take derivatives positions (futures and options) and is allowed to borrow for investment purposes.
“True Beacon AIF One is the most client aligned fund in the market — we are charging zero distribution fee, zero asset management fee, zero entry or exit loads. Our fund depends on a flat 10% performance share which ensures that we are highly aligned with delivering absolute returns to investors,”
Topic/Title- Market meltdown, Media platform name- ET Now, Date- April,2020
Market meltdown during pandemic.
Topic/Title- MD and CEO Ashish Chauhan and Co-Founder and CIO True Beacon and Zerodha Nikhil Kamath in conversation at the ETMGS 2019 panel: Stockbroking Industry – Challenges and Opportunities, Date- 2020
Introduced True Beacon, an AIF CAT 3 fund for UHNI.
LinkedIn post announcing fund
Introduced True Beacon , following are the feature-open ended, long term strategic fund catering to UHNI , transparent, no fees only performance based fees of 10%.
True Beacon Co- Founder Nikhil Kamath discusses True Beacon’s flagship fund for UHNI investors globally, Media Platform- ET Now, Date-2020
Nikhil Kamath introduces True Beacon , open ended AIF cat 3 fund for UHNI, with minimum threshold of 14 cr rupees or 2 million dollar , levy 0% management fee, 10% performance fees. The True beacon consists of Long only- 65% and long short – 35%.There is no mandate to transact through Zerodha.
Davos panel: Jaden Smith and Nikhil Kamath, co-founder of Zerodha and True Beacon, discuss philanthropy, sustainability and water issues. True beacon is set to launch a new Sustainability Fund, which will contribute 50 percent of earnings to philanthropic causes.
Title- Amidst dismal market performance True Beacon’s impressive debut, Media Platform- Business standard, Date Feb,2020
Sensex logged its biggest single-day plunge in more than a decade after the Union Budget was announced, signaling a market reaction against the lack of increased stimulus and structural reform measures from the government.
This was the benchmark’s biggest drop since 24 October 2008, when it had plummeted 1,070.63 points, and the fourth biggest fall overall.
Amidst this time of increased volatility, the Indian fund landscape has averaged 5.5 per cent yield over the last five months, while True Beacon AIF achieved 13 percent returns during the same period.
True Beacon, a CAT III AIF launched by Zerodha Co-Founders, is an “all-weather” AIF III that focuses on generating absolute returns for investors in all market conditions.
The other hallmarks of the fund are that it does not charge management fees, and is completely open-ended, creating a liquid instrument at a time with liquidity is important for corporate treasuries and individual investors alike.
The flagship fund has been welcomed by global and domestic institutional investors, family offices and UHNIs, contributing to an AUM growth of 30 percent month on month.
Analyst questions
- What is the investment philosophy of True Beacon? How were you able to beat the benchmark amidst this time of volatility?
- Your fund is an open end fund, and you make long term strategic investment, how do you meet redemption request if any?
- There are many long only and long short funds existing in the market with a minimum investment of 1cr, what is that thing which sets you apart from these funds, apart from the zero fee structure?
- You cater to long term strategic investor – UHNI with a minimum threshold investment of Rs 14cr or 2 million dollar, but your fund allocation is dedicated around 65% to long only, why don’t you incorporate more complex strategy in-order to generate alpha? And if you are able to generate alpha what is the source, do you have information advantage, analytical advantage or behavioral advantage?
- You may be using Zerodha to transact, how do you maintain Chinese wall in-order to avoid conflict of interest?
You must be logged in to post a comment.