Emkay Investment Managers launches Emkay Capital Builder Alternative Investment Fund

Emkay Investment Managers Limited (EIML), the asset management arm of Emkay Global Financial Services, has announced the launch of an open-ended category III Alternative Investment Fund (AIF) named “Emkay Capital Builder Fund.” EIML aims to raise Rs 500 crore from this latest AIF within the next 6 to 8 months.

The Emkay Capital Builder AIF is designed to generate long-term capital appreciation for investors by investing in a portfolio of equity and equity-related securities. This multi-cap portfolio will consist of around 20-25 stocks, focusing on delivering robust returns.

In its previous endeavors, EIML has successfully raised over Rs 450 crore with four series of close-ended AIFs, returning more than Rs 740 crore (pre-tax) to investors ahead of the stipulated time.

EIML also offers a portfolio management strategy under the name of Emkay Capital Builder PMS, which shares similarities with the new AIF. The existing PMS strategy boasts an average market capitalization of Rs 2,69,802 crores, with 60 per cent of its portfolio composed of stocks from the financial services, pharmaceuticals, and IT sectors. Notably, 70 per cent of this strategy’s composition is large-cap stocks.

Top 10 Holdings of Emkay Capital Builder PMS:

• Zomato Ltd. - 10.6 per cent
• ICICI Bank Ltd. - 10.5 per cent
• Divi's Laboratories Ltd. - 9.9 per cent
• HDFC Bank Ltd. - 9.1 per cent
• Sun Pharmaceutical Industries Ltd. - 7.8 per cent
• HCL Technologies Ltd. - 5.8 per cent
• NESCO Ltd. - 5.4 per cent
• Sundram Fasteners Ltd. - 4.9 per cent
• Mahindra Holidays Ltd. - 4.5 per cent
• Bharti Airtel Ltd. - 4.1 per cent

Sachin Shah, Executive Director & Fund Manager at Emkay Investment Managers Limited, stated, “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.”

Since its inception in April 2013, Emkay Capital Builder PMS has consistently achieved a compounded annual growth rate (CAGR) of 16.75 per cent. Over the past three years, as of May 31, 2024, Emkay Capital Builder PMS has outperformed the broad indices of Nifty 50 and BSE 500 TRI by 6.6 per cent and 1.6 per cent, respectively.

Nagesh Pai, National Sales Head at Emkay Investment Managers Limited, noted, “The total commitment amount in Category 3 AIFs has nearly tripled in the last three years and has also been the fastest growing category in the last year. The high growth rate suggests increasing investor confidence in this category, and EIML has a phenomenal track record of performance in CAT 3 close-ended AIFs.”