Helios -In Greek mythology, Helios is the God of Sun – the brightest star in the sky that has been universally worshipped as the natural source of light, energy, warmth, and nutrition on Earth since the start of time. According to mythology, Helios rode his chariot across the sky from east to west every day pulling the sun, and each night he rode back to the east, to diligently start again next morning. In addition, according to Hometic poems, Helios is described as the God who sees and hears everything and had an ethical and prophetic nature.
Helios Capital is inspired by “Helios” for he has all the qualities one would seek in a good fund manager: strong purpose carried out with diligence, ability to see everything from his vantage point and an ethical and prophetic nature.
Helios India is licensed by Securities & Exchange Board of India to offer Portfolio Management Services (PMS). Their flagship investment product is the Helios India Rising Portfolio.
Singapore based Helios Capital Management Pte. Ltd. (“Helios”), holding a Capital Markets Services License from the Monetary Authority of Singapore, and registered as a Foreign Portfolio Investor with the Securities and Exchange Board of India. Helios, founded in 2005, currently manages both India focused long/short and long only funds/mandates and a globally focused long only fund.
Founders of Helios (Dave Williams, Karan Trehan, and Samir Arora) have senior asset management experience and were pioneers in Indian asset management industry jointly setting up one of India’s first private sector AMCs in 1994 (in their prior roles). Additionally, Samir Arora has one of the longest track records (26+ years on the long side) in the Indian fund management business. He is also one of the most experienced India fund managers on the short side with a 15+ year track record.
|Year of Inception||2020|
|Number of Stocks||35|
|Investment Horizon||Long Term|
|Fund Managers||Dinshaw Irani|
With over 100 years of direct India investing expertise, Helios has one of the most seasoned teams in the Indian fund management industry; having covered the same market for so long provides them with a considerable edge. Helios has a greater knowledge of psychology behind Indian markets and is familiar with the background, strengths, and limitations of the majority of company managers, owners, sell-side analysts, and strategists.
The true difference between investors is no longer information but knowledge, given the abundance of financial and business channels, quarterly results and conference calls, a number of conferences and management road shows, social media and blogs, and substantial sell-side coverage. It is more crucial to incorporate this data into insightful conclusions using a strong and consistent framework than it is to chase raw data merely.
They are bottom-up investors who think that a strong theme or a favourable “big picture” may help stock selection by providing a secular tailwind. They must have a thorough grasp of the topic (possible size of the opportunity, entrance hurdles, competitive intensity, etc.) in order to be long-term investors since this enables them to stick onto a company even if it briefly becomes costly owing to great returns. After decades of investing, Helios has developed a firm conviction that, although purchasing good companies produces fair returns, adding the advantage of potent secular tailwind results in multiyear outperformance.
According to a study of data from the last 25 years, almost one-third of the stocks have consistently outperformed the market as a whole. Suppose the market average return is an average of all stock returns (weighted, without a doubt, by business size), then, in general. In that case, half of the firms should do better than average, and the other half should perform lower than average.
Even while about one-third of businesses consistently outperform the market as a whole, their margin of advantage decreases as time goes on. This is because if many firms may outperform the market occasionally, reversion to the mean makes it difficult to maintain the heightened level of performance over extended periods of time.
Long term does not mean “Buy & Forget”
Even while Helios frequently invest for the long term on the long side, Helios are not ready to presume that businesses will continue to succeed at the same rate or in the same way years from now. As a result, Helios starts by seeking to find 1 to 3-year winners before proceeding.
Easier to know what is worse than to know what is good
Since it is simpler to understand what is terrible than what is good, it is easier to “reject stocks with conviction” than to “hold stocks with conviction.” Even a large number of positive elements may not be sufficient to convince you that an investment is likely to be a good one. Yet, one negative factor may be sufficient to know that an investment may be terrible.
Start with “Why Not to Buy”
Helios ensures that the prospective “buy” pool is a carefully curated list of desirable firms by beginning the research with “why not to purchase” a certain company. Helios merely insists on considering sturdy and sustainable enterprises.
Helios’s philosophy towards our investors is simple:
They have serious reputational & financial “skin in the game” & take their fiduciary responsibility extremely seriously. They consider their relationship with investors as sacred. They will not let you down knowingly and will always be open and fair with you. On any thing where they have control, they will do whatever is first right for Investor.
The investment philosophy behind the Helios India Rising Portfolio has developed over the past 25+ years. They have one of the most experienced teams in the Indian Fund Management Industry with over 100 cumulative years of direct India investing experience- covering the same market for so long gives one a significant advantage. They know the history and strengths & weaknesses of most corporate managers/owners/sell side analysts/strategists and have a deeper understanding of the psychology that drives Indian markets.
With multiple financial and business channels, quarterly results and conference calls, number of conferences and management road shows, social media and blogs and extensive coverage from sell side the real difference between investors is no longer information but knowledge. Using a robust and consistent framework to assimilate this information to form meaningful insights is more important than simply chasing raw information.
What is the investment philosophy of Helios India rising PMS?
Simply put, every successful investor’s investment mantra is to Buy good companies and hold them for the long term
But the question that arise are What to Buy (or how to define good), How long term is long term and how to know today how the company will do in the long term? What to do if company becomes very expensive during this holding period-or what to do if returns from holding the company come in much faster (or much higher) than expected?
Owning companies that are clearly accepted as good is fine but how to identify and buy into companies before they are widely accepted as good?
Helios Team’s data crunching of Indian and Global equity indices (Nifty 500 & S&P 500) for over 17 years suggest that a large number of companies do well and over 1/3rd of companies perform substantially well then, the index. In a way while its difficult to define what is good, it’s easier to remove bad for reasons which are based on past behaviour of companies in market.
So if a large number of companies do better than the index, What normally prevents a stock from doing well, is the presence of even ONE of the following factors:
- Bad theme (size of opportunity)
- Unfavourable industry dynamics
- Potential for disruption
- Chins/weakness in management/background/strategy
- Poor corporate governance
- Low quality accounting
- Negative medium-term triggers (in most cases projected financial performance)
- Unreasonably high valuations
Eliminating the bad significantly increases the probability of arriving at the good and reduces the cost of any error
From the universe of stocks that“ cannot be rejected on any factor” helios Investment team build their portfolio with a right blend of good companies and “emerging” good companies.
Which investment horizons does Helios India rising PMS cater to ?
Helios Portfolio caters to investor class who would want to Grow their wealth with optimal amount of risk, Helios portfolio is a multicap portfolio with right blend of sectorial bets taken timely by the investment team keeping in mind what is good for the investor as they have a very flexible approach to fund management.
Helios portfolio stock investment horizon extends from 1 year to 3 years. They invest in medium and long-term investments. The investments are reanalyzed at the end of the investment duration If the investments show potential and meet the criteria set by Helios India Rising PMS, they further hold the assets. simply put series of short term gets converted into long term holding with performance.
About Fund Managers
Dinshaw Irani- Chief Investment Officer of Helios India
Dinshaw Irani is the Chief Investment Officer of Helios India. Prior to this, he was Executive Director at Artemis Advisors (exclusive research advisors to Helios Singapore) for over 14 years. As the head of Artemis Advisors, Dinshaw led the research process, from industry outlook and idea generation to final recommendation. Prior to joining Artemis in 2005, he was the Principal Portfolio Manager at Sharekhan during 2003-04, setting up their portfolio management services division. Prior to his stint at Sharekhan, Dinshaw was Vice President in the Asian Emerging Markets team for Alliance Capital in Mumbai for over 3 years covering the consumer and pharmaceutical sectors. Before Alliance, Dinshaw has worked at Sun F&C Mutual Fund and at Lloyd Securities. Dinshaw enjoys traveling to new places where he can spend time outdoors on hiking trails and in nature parks. Dinshaw is a graduate in Commerce (Hons.) and holds a post-graduate diploma in Rural Management from the Institute of Rural Management, Anand. Dinshaw has total investing experience of 28 years.
Meet the Team
Samir Arora- Founder, Helios Capital
Samir Arora is the main founder & fund manager at Helios Capital. From 1998 to 2003, he was the Head of Asian Emerging Markets at Alliance Capital Management in Singapore (both fund management and research, covering 9 markets). From 1993 to August 2003, Samir was the Chief Investment Officer of Alliance Capital’s Indian mutual fund business and, along with managing Alliance Capital’s Asian Emerging Markets mandates, managed all of Alliance Capital’s India-dedicated equity funds.
What kind of return does Helios India rising PMS try to gain ?
If we go by the long term history of the Helios Investment philosophy, have outperformed the market by 5%-10%, hence a investors expectation should be such that if the broader market delivers X, Helios Investment team with their expertise will better that to X + 5% or so over long period. (Past Performance may or may not sustain in future performance and investors should consult advisors to choose portfolio which suits their risk appetite).
How does Helios India Rising PMS from an excellent portfolio?
Helios India Rising PMS believes in two critical factors for creating and maintaining good portfolios for their clients: good stock selection and good portfolio construction.
On What basis does Helios India rising PMS decide to sell a stock ?
There are few criteria that Helios India Rising PMS has set according to which they decide to sell a stock. Stocks are sold when there is an unexpected negative development in stock. Deterioration of the fundamentals of a company is also a solid reason to sell any stock. Stock may get sold partially or entirely when the stock outperforms returns over an extended period. If the valuation is above the set bar, any stock can be bought or held and sold. Stocks are also sold to make a difference in any portfolio and make a place for a better stock.
What is Helios India Rising PMS’s investment strategy?
Helios India Rising PMS is a Portfolio management system dedicated to long and multi-cap investments which aim to outperform its benchmark index. The aim is to do so via medium and long-term horizons.
In Helios India Rising PMS, What is the minimum limit of investment for a client ?
The minimum limit set by the Securities and Exchange Board of India Regulations 2020 at the opening time is Indian Rupees 50 lakhs.
Does Helios rising PMS only cater to Indians rising India ?
No, Helios India Rising PMS not only Indians residing in India but also Non-resident Indians.
|Product - AMC||Category||AUM (in Cr.)||Performance||1M||3M||6M||1Y||2Y||3Y||5Y||10Y||SI|
Helios India Rising PortfolioAMC Name: Helios Capital Management (India) Private Limited Inc Date: 3/16/20
|NSE 500 TRI||4.68||9.07||8.02||6.68||29.42||NA||NA||NA||30.74|
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.