Stalwart’s one & only fund ‘Wealth Guardian‘ is true-to-label and operates as a multi-cap fund.
Firm’s founder has invested considerable capital (>Rs 5 Cr) in the same fund ensuring skin-in-the-game while the fee is structured in a way that the firm earns only after its clients have earned, ensuring alignment of interests.
Fund at a Glance
Founder has invested (>Rs 5 Cr) in the same fund
Investing is Like Farming
- Farmers choose the best plants for their soil.
- They irrigate and fertilise them.
- They remove weeds.
- There are no shortcuts to grow the crop faster; it takes its own time.
- They don’t uproot crops before they have had a chance to grow to their full potential.
- There will be good seasons and bad seasons – they cannot control the weather, but just be prepared for it.
Why Stalwart Advisors?
Stalwart Investment Advisors LLP is a boutique SEBI-registered portfolio management firm (INP000007757) founded by a team of CFA (US) charter holders with deep experience across fundamental research and portfolio management.
The firm’s name ‘Stalwart‘ is inspired from Peter Lynch’s bestseller investing book where the term is used to describe bluechip companies that compound at higher rates than economy for long periods of time.
Fully Customized For You
We deploy your initial capital as well as all increments (SIP) only when our preferred stocks are in the buy zone as entry valuations matter a lot. This is starkly different from Model Portfolio or buy-at-any-price (BAAP) approach followed by many PMS. Similarly, when you put money in Mutual Fund or Index Fund, it gets fully deployed on same day’s NAV. In contrast, our customized approach ensures you can leave market timing worry to us while adding funds confidently.
Only One Fund with Skin-in-the-game
You don’t have to worry about whether to invest in Small-cap or Large-cap, Healthcare or Banking, Growth or Value. Stalwart has only one fund which invests in opportunities available across the spectrum, while our team’s own capital is also invested in the same fund ensuring skin-in-the-game.
Low Fixed Fee – Alignment of Interest
One of the lowest fixed fee in the industry at just 0.50% per annum to cover account management costs, while offering hurdle rate (catch up), as well as compounding, on the initial investment even in down/negative years. Having a fair & conservative fee structure like this ensures our interests are fully aligned with investors and we earn only when you earn.
Fund’s Hunting Ground
Preferred Market Cap
Wealth Guardian Fund (WGF) is a multi-cap fund i.e. it invests across large-cap, mid-cap & small-cap. However, based on our past preferences, we find our sweet spot in companies with market-cap ranging between Rs 1,000 Crores to Rs 10,000 Crores i.e. the small & mid-cap
This is our primary hunting ground while the residual shall get invested in large caps. We avoid micro-caps due to thin liquidity and high impact/trading cost.
WGF is a sector-agnostic fund and focuses more on bottom-up (company-specific) research. Having said that, we hunt for well-run businesses in industries that are growing faster than the Indian economy (GDP).
Our Preferred Sectors include:
- Industrials (Consumables),
- Consumer (FMCG),
- Banking, Financial Services & Insurance (BFSI),
- Information Technology (IT),
- Automobile, &
- Pharmaceuticals & Agro-Chemicals.
Preferred Company Traits
- Sustainable Growth
- High Value-Addition (Gross Margin)
- Generates Reasonable Return on Equity
- Low to Nil Borrowings
- Minimal Working Capital
Preferred Management &
Having an owner-operator with a high stake in the company is another desirable trait. Running the business in the best possible way is then in his own interest. It is, for this reason, we tend to avoid public-sector undertakings as they are run by bureaucrats with limited accountability.
Fund’s Investment Approach
Consistent Compounders (60%)
1. Long Track Record
2. Predictable Growth
3. Robust Balance Sheet
4. Sound Corporate Governance
5. Reasonable to Fair Valuation
Special Opportunities (40%)
1. New Promoter/Management
2. De-merger (Spin-offs)
3. Mean Reversion (Cyclicals)
4. Temporary Distress
5. Variant Perception
Wealth Guardian Fund’s Fee Structure
|Serial No.||Nature of Fees||Annual Fees|
|1.||Management / Fixed Fee|
(on assets under management)
(on returns above hurdle rate of 7%)
|3.||Other Incidental Charges: Brokerage, Custodian Fee, Stamp Duty, Taxes, etc.||At Actual|
- The fee charged by Stalwart Investment Advisors comes with a certain underlying philosophy – we deserve to earn only once our partners have earned.
- Keeping this in mind, the fixed fee is kept at a nominal 0.50% of funds per annum, just to cover the account management costs. The comparable fixed fee in other PMSs & Mutual Funds is 1-2%.
- Only when annual returns are above the hurdle rate of 7%, a performance fee of 20% on excess returns (above 7%) would accrue.
- While calculating performance fees, we follow the three best practices keeping in mind the interest of our partners:
- Hurdle rate (catch up), as well as compounding, on the initial investment even in down/negative years.
- High water mark (so that you avoid paying fee on same gains again).
- On net returns after adjusting for all expenses.
Meet the Core Team
Managing Partner & CIO
Manish Chopra, CFA
Chief technical officer
The firm is led by Jatin Khemani, who has over twelve years of experience in investment analysis and portfolio management. Prior to founding Stalwart Advisors in 2014, Jatin was working with a Delhi-based family office as the head of research. He is a CFA (US) Charter holder, earned MBA in Finance from Christ University, Bangalore and graduation in commerce from Delhi University.
Thanks to his admiration for Peter Lynch & Phillip Fisher, Jatin has over the years become proficient in Scuttlebutt; a primary research method to find out truth about a company or an industry.
Jatin has a passion for teaching – he has been a Guest Faculty at a few B-Schools & CFA Institutes visiting students during weekends. He is also a trainer at FIL, Pune. As a way of giving back to society, he has been an active volunteer with The Art of Living since 2006, where he has led multiple state level fund-raising campaigns.
Stalwart’s Research committee is assisted by a team of research associates & analysts, further guided by mentors with 3+ decades of experience. To ensure a smooth experience for our investor-partners, adequate staff is on the payroll for operations & compliance.
Jatin is the youngest-ever analyst to get featured on ‘Wizards of Dalal Street’ of CNBC-TV18 hosted by legendary investor Mr. Ramesh Damani.
Stalwart’s Track Record (Advisory)
The PMS is newly launched and its monthly performance can be tracked here.
However, Stalwart Advisors has been running Independent Equity Research (Stock Advisory) since November 2014 which has generated an XIRR of 23.5%* significantly outperforming the markets.
This period coincided with multiple bull and bear markets, and extreme events like Demonetisation, GST rollout, COVID-19 pandemic & war among others, helping the team gain valuable experience in managing volatility and behavioural finance.
*As on 31st March 2023. Audited by Independent Agency. Also, Verified via MProfit. Excluding Dividends. Exc. Fee & Expenses.
Note: This section is for transparently communicating the factual information and should not be seen as advertisement or promotion.
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