Sanjay Parek,Founder, Sohum Asset Managers

Alternative Investment Funds (AIF) and Portfolio Management Service (PMS) providers are gaining popularity among investors seeking specialized investment products which offer higher risk adjusted returns. AIFs and PMS’ focus on crafting bespoke portfolios that enable investors to seize unique opportunities in their journey of wealth creation.

Established in 2021, Sohum Asset Managers aims to build a boutique investment management platform known for its expertise, integrity, transparency and the attitude to keep client interest paramount.

With an eclectic mix of young minds and industry veterans, Sohum Asset Managers aspires to protect capital, deliver superior investment results with risk under control, not to overpay for growth, avoid errors to extent possible and to conduct their business with highest standards of integrity. The firm distinguishes itself as a reliable partner for those pursuing sustainable equity growth in India's volatile markets through a strong emphasis on research and meticulous execution.

Sohum India Opportunities Fund

The flagship offering of Sohum Asset Managers, the Sohum India Opportunities Fund, is a Category III SEBI registered AIF established in 2022. Sohum has also obtained a PMS license in 2023 to expand its offerings.

Sohum India Opportunities Fund is a long only fund with at least 70 percent in large cap stocks emphasizing strategic sectoral balance. By incorporating a diverse blend of large, mid, and small-cap stocks within targeted sectors, the fund maintains a cyclical portfolio while integrating defensive elements to safeguard against market volatility. With a keen sensitivity to the Indian economy and global linkages, it carefully monitors the overall leverage of portfolio companies to ensure stability.

Liquidity is a priority, as the fund is designed to maintain adequate cash levels without using leverage or engaging in derivative positions. This disciplined approach allows Sohum India Opportunities Fund to adapt to market conditions while striving to deliver consistent performance and alpha for its investors.

"Since our founding in May 2022 till Aug 2024, we have generated a steady return of 91 percent, exceeding the Nifty Fifty TRI by 31.1 percent, for Sohum India Opportunities Fund (Pre-tax return post fees - Direct Option), with average 79 percent allocation to large caps. Also to note, creating a portfolio of sustainable and reasonably valued businesses (GARP) represents the core of our investment philosophy at Sohum. For us, managing risk is as important as creating alpha over the longer term," signifies Sanjay Parekh, Founder of Sohum Asset Managers.

“Sohum India Opportunities Fund is built on the belief that long-term growth comes from identifying strong businesses with robust balance sheets, efficient management and reasonable valuations. Our disciplined approach to investing across market capitalization allows us to capture alpha while reinforcing a strong risk framework," continues Sanjay.

The team overseeing the fund keeps a close eye on a targeted set of stocks, including large, mid, and small-cap companies. In addition to the team's wealth of knowledge, the firm's methodical assessment of governance, capital allocation, and return ratios guarantee careful screening before investment. Furthermore, it seeks to find companies with a significant higher price-value gap in mid-cap and small-cap compared to large cap to manage higher risk and volatility in mid-cap and small-cap segments.

Envisioning Sustainable Growth

Sohum’s operational structure comprises transparency, moral behavior, treating customers fairly, and reliable performance. The firm places more importance on developing the proper culture, putting in place reliable procedures, and upholding a disciplined approach to consistent returns than it does on meeting financial targets alone. "Although our goal is to reach the billion-dollar asset milestone, we believe this could be achieved by adhering to our core values and performing well, despite changes in the market. In the cut-throat world of investing, we are ready for long-term success and expansion by putting these core principles first. We genuinely believe that this decade belongs to India (Amrit Kaal) and investing in India presents a once-in-lifetime opportunity akin to the Japanese Economic Miracle of the 1980s and the Asian Tigers of 1990s. We are excited about the opportunities in the coming years and remain focused on delivering superior value and performance to our investors,” concludes Sanjay Parekh.