Helios India Rising PMS

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.

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.

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.

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.