Emkay Investment Managers Limited (EIML), the asset management arm of Emkay Global Financial Services, on Thursday announced the launch of an open-ended category III Alternative Investment Fund (AIF) called the “Emkay Capital Builder Fund”.
EIML aims to raise about $60 million (Rs 500 crore) through the latest AIF in the coming 6-8 months, it said in a press statement.
Emkay Capital Builder AIF intends to generate long-term capital appreciation for investors from a portfolio of equity and equity-related securities. The fund will maintain a multi-cap portfolio of around 20-25 stocks, the statement added.
In the past, EIML has raised over Rs. 450 crore across four close-ended AIFs and claims to have returned more than Rs 740 crore (pre-tax) to the investors before the stipulated time.
EIML already has a portfolio management strategy under the name of Emkay Capital Builder PMS which is similar to the AIF offering. The average market capital of the existing PMS strategy is Rs 2,69,802 crore. About 60% of the PMS’s portfolio is currently formulated of stocks from the financial services, pharmaceuticals, and IT sectors. Currently, 70% of the strategy’s composition is large-caps.
The firm’s past investments include Zomato, ICICI Bank, DIVI Laboratories, HDFC Bank, Sun Pharmaceuticals, HCL Technologies, and among others.
“Emkay Capital Builder AIF caters to the growing preference for Alternative Investment Funds as an investment avenue amongst UHNIs in India. Our bottom-up stock-picking strategy will help in formulating a winning AIF portfolio backed by the robust E-Qual model to mitigate risks related to management quality,” said Sachin Shah, Executive Director & Fund Manager, Emkay Investment Managers Limited.
Since its inception in April 2013, Emkay Capital Builder PMS claims to have consistently achieved a compounded annual growth rate of 16.75%.
