The Rs 400-crore Girik Multicap Growth Equity Strategy PMS is giving established category peers a run for their money. Steered by the CANSLIM philosophy of investing, the strategy since inception has given one of the best returns in the multicap space and also comprehensively beat the Nifty. Here is a review.
About Girik Capital
Founded in 2009, Girik Capital is a Mumbai based SEBI registered portfolio manager providing discretionary asset management services. Its focus is Indian listed equities and caters to corporates, institutions, family offices and individuals from India and globally. The investment management team at Girik brings more than 20 years of cumulative experience in investment management.
The PMS provider is led by Charandeep Singh and Varun Daga. Charandeep currently jointly leads the investment decision making process at Girik. Varun is co-founder of Girik and jointly leads the investment decision-making process.
Investment philosophy
Girik employs a disciplined and process-driven approach to investing in industry leaders with strong fundamentals while building in a sufficient margin of safety. Its investment strategy has been influenced by William O Niel’s CANSLIM style of investment management.
CANSLIM stands for C – Current Earnings, A – Annual Earnings, N – Newness, S – Supply & demand, L – Leader or laggard, I – Institutional Ownership, and M – Market direction.
Performance
The strategy was launched in December 2009, after the Global Financial Crisis (GFC). The strategy size is Rs 400 crore. The investment horizon is 3+ years.
The multicap strategy is benchmarked to Nifty 50 performance. Rs 100 invested with Girik Multicap Growth Equity Strategy since its inception in December 2009 is worth nearly Rs 700 where as Nifty has grown to Rs 253 during the same period.
The short and long-term performance of the Girik Multicap porttfolio is enthusing. In the last 1-year period ended Nov-20, the PMS strategy has grown 20.51% compared to 7.57% for Nifty, 14.48% for Nifty Midcap 100 and 13.04% for Nifty Smallcap. In the 5-year period, Girik Multicap Growth Equity Strategy has delivered 16.81% CAGR compared to 10.32% for Nifty 50, 8.27% for Nifty Midcap 100 and 3.46% for Nifty Smallcap. In the 10-year period, the PMS fund has given 17.58% CAGR compared to 5-8.3% for the benchmarks. Since inception the strategy has given over 19% CAGR, more than double that of Nifty 50.
The performance of Girik Multicap Growth Equity Strategy is also better compared to established peers. The PMS strategy has given 20.51% in 1 year period compared to ASK IEP’s 14.3%, Motilal Oswal NTDOP’s 5.22%, Karma Capital Long Only India Public Equity’s 11.38%, Alchemy Select Stock’s -5.3%, and Axis Brand Equity’s 13.3%. The Girik PMS edge over established rivals, such as ASK IEP, Motilal Oswal NTDOP etc., remains even in the 5-year period.
Portfolio
The multicap portfolio has 43% exposure to largecaps, 20% to midcaps, 26% to smallcaps. About 11% is in cash. There are 23 stocks in the portfolio.
The portfolio at present is heavily titled towards Pharmaceuticals & Drugs (15.52%), IT – Software (11.78%), Financial Services – Investment & Insurance (10.99%) and Consumer Food (8.92%). Financial Services – NBFC (8.03%), e-Commerce (6.21%), Refineries (6.10%), Financial Services – Banks (5.61%) also occupy important slots.
In terms of stocks, the multicap PMS strategy has bet big on Infosys, Indiamart Intermesh, Reliance Industries, Jubilant FoodWorks, HDFC Bank and Larsen & Toubro Infotech.
Skin in the game
There is strong sponsorship of Rs 57 crore investment by Girik fund managers in Girik funds. Girik Capital is owned and operated by its investment managers.
Wealthzi is organising a digital conclave with the founders of Girik Capital on Friday, December 18, at 4 pm. The top of discussion is, “Markets at all time high: What should be your equity strategy in 2021”.
For registration, click here (Seats are limited, so hurry!)
