GIRIK Capital Multicap Growth Equity Strategy

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GIRIK Capital Multicap Growth Equity Strategy

Fund Snapshot

Year of Inception 2009
Number of Stocks 15-20
Investment Horizon Medium to Long Term
Fund Managers Mr Charandeep Singh and Mr Varun Daga

Investment Philosophy

The portfolio follows the A Willian J. O’ Neil strategy. Girik Capital’s investment philosophy is based on the following five steps:

  • Step One: Automated Screening for superior outcomes
  • Step Two: Establishing Leadership
  • Step Three: Fundamental Research Overview
  • Step Four: Valuation Consideration
  • Step Five: Risk Management Framework

Girik Capital focuses on investing in emerging businesses having good governance, growth and efficiency.

Unique Feature

The CANSLIM stock-picking methodology created by American investor William J. O’Neil is the source of inspiration for the Girik Multicap Growth Equity Strategy. This method aims to find top firms from top industry groups that exhibit strong acceleration in earnings, a novelty in goods, or a change in management. It proposes purchasing them at the correct price with enough margin of safety before the company’s significant stock price gain.

Because of a clever comeback from lows at the end of the month, the markets, which were still in corrective mode, closed the month just slightly down. The rally was restrained by the abrupt start of the second COVID wave and the possible negative economic effects of regional lockdowns.

The contagious virus has returned with force in the second wave, just as the populace and the governments believed we were over it. The nation is experiencing hardship due to its overburdened healthcare system and lack of life-saving medical supplies. We offer up prayers for the welfare of our neighbours. The thoughts and prayers are with those who have lost loved ones to the virus. Despite how hopeless it may seem, humanity has already surmounted enormous challenges to become stronger. We will also get through this catastrophe.

A few industries distinguished out owing to their outstanding performance despite depressing markets. Metals maintained their strong performance, climbing our leadership charts to the top. IT took a little break as sugar climbed the list of top sectors. Select APIs also gained strength, and chemicals remained a leading industry.

Bull markets usually begin with scepticism and conclude with unwavering certainty. Rather illogically, this causes investors to become protective at the start of the bull run and quite aggressive towards the conclusion. It begins to make sense, though, when we realise that at the beginning of a bull market, all of the news is negative, and the macroeconomic indicators are poor, but at the peak, everything is fine. On negative news, investors naturally become risk-averse, whereas, on good news, they naturally become risk-takers. This common trap that even seasoned investors fall for may result in multiple expensive errors. Investors must be aware of their actions at various times of the bull market to resolve this paradox. Investors should create reliable procedures to aid them in determining how aggressively or defensively they should approach the market if that is not achievable.

As growth investors, they are aware that acting hastily around peaks might result in big losses for them. As a result, you must exercise caution, especially while using the new currency. When growth tales fizzle out, blindly purchasing the bull market winners at their top can destroy portfolio results. Fair enough, you have no way of foreseeing market excesses, and you also lack a crystal ball to identify the peaks. Therefore, when someone uses the fresh funds, they attempt to be methodical in their approach. They attempt to avoid being purchasers at all costs and instead adhere to a strategy for investing the additional money gradually.

FAQs

What is the prime focus of GIRIK Capital Multicap Growth Equity?

The primary objective is to provide discretionary asset management services. They want to cater for corporates, family offices, institutions, individuals from India and globally

What is the idea of the GIRIK Capital portfolio?

The idea of GIRIK Capital is to make investing more straightforward for the investors, and thus GIRIK Capital works to achieve the same. They aim to give easy and steady returns to their clients.

What are the exit load charges?

Exit load charges are applicable if the investor is exiting within twelve months of investing. But after twelve months, there are no exit load charges.

What are the advantages of choosing GIRIK Capital for investing?

GIRIK Capital offers their clients the following benefits:

  • They have an experience of a decade, and this makes them unique.
  • Their investment and commission plans are flexible and provide convenience for clients.
  • They have an extra top-up facility.
  • They are very disciplined when it comes to providing detailed reports to their clients.
  • They update their clients time-to-time with the various changes in investment policies and the market.

How good are GIRIK Capital’s customer care support and service?

GIRIK Capital has a dedicated relationship manager for its clients. The manager is always ready to answer your investment-related queries and help clients understand their investment plans and approach.

Clients can call their fund managers 5-7 times a month. A fund manager is liable to resolve your issues within 21hours of working days.

Is it worth investing in GIRIK Capital Multicap Growth Equity Strategy?

GIRIK Capital has been in the limelight since 2008; They have an expert team in investment. They have open ways of investment opportunities to generate more revenue for their clients. GIRIK Capital has experience of serving 400 plus clients globally. They have a legacy of trust and delivering the desired capital generation.

How can one invest with GIRIK Capital?

You can quickly contact https://aifpms.com/contact/ and write your queries. We are always ready to serve you with the best possible investment opportunities.

What is the approx AUM of GIRIK Capital?

Currently, GIRIK Capital is serving 400 clients and has 400 crores capital under management.

Who is the current fund manager of GIRIK Capital Multi Cap Growth Equity?

Mr. Varun Daga is the current fund manager of GIRIK Capital. He is also the co-founder of Girik Capital with Mr Charandeep Singh. Varun Daga GIRIK capital is responsible for choosing major investment strategies. He has a remarkable experience of over a decade in the capital market.

Where can I find complete details about the performance and return of GIRIK Capital?

We at AIF & PMS experts, https://aifpms.com/, will be highly obliged to serve you with the information you need regarding GIRIK Capital. You can quickly write your issues and queries and contact us. We will revert you as soon as possible.

About Fund Managers

Varun Daga
Founder and Fund Manager

Varun is co-founder of Girik and jointly leads the investment

Varun-Daga GIRIK CAPITAL

decision-making process. He is a self-taught successful investor and has a remarkable experience of over a decade in capital markets. Varun has developed proprietary systems and screeners in order to identify promising leading growing companies well in advance of their biggest gains. Prior to Girik, he ran the equity investment division at his family office. He holds a Bachelor of Management Studies, majoring in finance from Narsee Monjee College of Economics.

Investment Process

Step 1 – Proprietary Automated Screening Process for Idea Generation

  • Industry Strength
  • Industry strength relative to other industries 
  • 50% of stock performance is tied to the industry group
  • Shortlist leading stocks in leading industries
  • Relative Price Strength
  • Look for leading price performers
  • 52-week and lifetime highs
  • Winners show price strength early in a bull cycle
  • Earnings Acceleration
  • Stable historical earnings
  • Accelerating current annual & quarterly earnings
  • Immense future earnings growth potential
  • List of stocks

Step 2 – Establishing Leadership

  • Product/ Service Leadership
  • Ability to Scale
  • Management Track Record
  • Efficient Capital Allocation & Superior Return Ratios
  • Governance Standards & Alignment of Interest

Step 3 – Fundamental Research

  1. Business Model
    1. Product/service leadership
    2. Market size & opportunity
    3. Management efficiency – superior execution & delivery
    4. Relevance to all stakeholders
  2. Financial Metrics
    1. Superior return ratios
    2. Efficient use of capital
    3. Healthy free cash flow generation
    4. Funding of growth ideally through internal accruals
    5. Low to no debt
  3. Governance
    1. No significant related party transactions
    2. Minority shareholder friendly (E.g., Dividends, Buybacks)
    3. Alignment of interests – management compensation & ESOPs
    4. Ideally, no large promoter pledges and sales in the past
    5. Professionally managed; genuine board of directors; reputed auditors

Step 4 – Valuation Consideration

  1. Value in Growth
    1. Expensive in the short run but cheap in the long run
    2. Accelerating earnings growth combined with leadership ensures multiple premium justifications
  2. Margin of Safety
    1. Assessment of longevity of growth and leadership
    2. The estimated downside risk of going wrong due to overestimating growth
  3. Traditional Valuation Metrics
    1. Reliance on traditional valuation metrics can be deceiving
    2. Trading Multiples (P/CF, P/E, EV/EBITDA) relative to historical averages – significant premium requires serious justification
    3. “Low P/E” investing can be a value trap

Step 5 – Risk Management Framework

  1. Portfolio Review
    1. Weekly fundamental stock reviews
    2. Ensure balance in portfolios based on industry & stock concentration, market cap weights, and liquidity
    3. Check for technical / distribution patterns
  2. Eliminating Losers
    1. Identify and eliminate investment mistakes actively
    2. Monitor for any sectorial and stock weakness
    3. No averaging down on a loss-making position
  3. Taking Profits
    1. Riding winners until seeing earnings growth deceleration
    2. Selling in euphoric tops
    3. Red flags – crowded trades, consensus bets, excessive media coverage, over-guidance from management 

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Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.