EQUITREE Emerging Opportunities PMS

Strategic Business Focus

Investing in familiar businesses with clear moats, targeting 25–30% CAGR earnings growth and scalable potential.

Valuation-Driven Investing

Identifying high-growth opportunities trading below intrinsic value, with a preference for low PEG ratios.

Management Expertise

Focusing on family-led companies with strong leadership, consistent execution, and clean corporate governance.

Investment Selection Process

A structured journey to a focused portfolio of 12–15 listed stocks

• Market Universe (~6,000 companies): All actively traded companies across Indian equity markets.
• Equitree’s Investable Universe (~1,000 companies): Filtered by market cap (₹500–5,000 Cr), debt-to-equity, ROE, ROCE, and promoter holding.
• Focus Sectors (~250 companies): Real economy businesses in capital goods, infrastructure, and manufacturing.
• Qualitative Checks (~100 companies): Evaluated through promoter pedigree, factory visits, channel checks, and bottom-up research.
• Active Watchlist (~50–60 companies): Tracked closely for business triggers and valuation comfort.

Our Investment Process

Idea Generation
 Opportunities sourced from proprietary screeners, industry trackers, and network insights, focused on structurally strong, under-researched businesses.

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Deep Research
 Conducting plant visits, channel checks, forensic reviews, and direct management interactions to validate fundamentals.

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Portfolio Construction
 Initial position size of 2–3%, scaled up to 7–8% based on conviction, execution, and valuation.

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 Risk Management
 Continuous monitoring of financials, promoter actions, peer benchmarks, and macro developments.

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Exit Discipline
 Exit decisions triggered by valuation stretch, governance issues, or business underperformance.

Why Equitree Capital:

• Experienced team managing ₹730 Cr, trusted by 180+ HNIs and family offices.
• Buy-and-hold strategy (3–5 years) that leverages compounding and tax efficiency.
• Growth private equity approach with 360° due diligence and focused portfolios.
• 13 years of performance with 32% IRR* and 83% portfolio hit ratio.
• Top 5 PMS with 50% 5Y TWRR (as of May 2025), ranked in Top 10 PMS every year from 2020–2024.

Early Identification: Entering scalable businesses early, before sell-side coverage, at deep-value entry points.

Value Enhancement: Partnering with promoters to improve capital allocation, governance, and communication.

Aligned Incentives: Fees apply only after 2x returns or exit, backed by transparent reporting.

High Conviction: Holding winners for 5–7 years with <0.5% churn and an 85% success rate.

Discovery Premium: Capturing value as early-stage businesses attract broader market attention.

Agility Over PE: PE-style depth with public market flexibility—no lock-ins, faster exits, and dynamic position sizing.

PMS Portfolio Returns (%)

PMS Portfolio Risk Metrics

As of May 31, 2025
Source: Nuvama Custodian Services, Equitree Capital
Returns are computed on TWRR basis net of fees/expenses. Returns over 1 year are annualized.
Not verified by any regulatory authority/SEBI.

Why Equitree’s PMS over Alternates?

Key Differentiators

• Equitree is a single strategy fund with a focused, concentrated investment approach, similar to a PIPE fund.
• A single PMS strategy helps avoid common pitfalls like portfolio mirroring and over-diversification.
• Investment decisions are based on independent and primary research, not consensus or secondary data.
• PE and VC firms typically face higher risks of underperformance and limited exit options.

Over 3 years, small-cap PMS strategies outperformed mutual funds by 91%, compared to mutual funds’ 41% (PMSBazaar).