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Our Proposed Services

Discretionary Portfolio Management Services

The Portfolio Manager will offer Discretionary Portfolio Management services to its Clients in the listed equity space. The Portfolio Manager will exercise the sole and absolute discretion, with respect to the investment decisions and management of the assets of its Clients. The focus of the fund will be on taking concentrated bets for the long term in high quality publicly listed Indian companies trading at a discount to their intrinsic value.

Non - Discretionary Portfolio Management Services

The Portfolio Manager may offer Non-discretionary portfolio management services to its Clients pursuant to the terms and conditions contained in the Non-Discretionary Portfolio Management Services Agreement, wherein the Portfolio Manager will render non-discretionary services to its Clients in relation to the investment and management of the assets of such Clients, and based on the instructions of the Clients. The focus of the fund will be to invest in multiple asset classes – a) Listed Equity b) Unlisted Equity c) Listed and Unlisted debt securities

Advisory Services:

The Portfolio Manager may provide non-exclusive, non-binding investment advisory services to its Clients pursuant to the terms and conditions contained in the Investment Advisory Services Agreement. Here, the entry/exit timing, execution and settlement of trades are solely the client’s prerogative and responsibility. The advisory will be across multiple asset classes – a) Listed Equity b) Unlisted Equity c) Listed and Unlisted debt securities

About Us

Prudent Investment Managers is an investment firm that is aiming at generating superior risk adjusted returns for the investors. The firm focuses on generating absolute returns for the investors as opposed to the relative returns philosophy prevalent in the industry

The firm aims to achieve this by doing the following –

Take concentrated risks in individual stocks rather than focussing on creating a diversified portfolio
Invest with margin of safety and taking a long term call / invest in out of flavour sector
Take aggressive cash calls / follow multi asset class approach

Investment Philosophy

Every investment decision at Prudent Investment Managers is driven by the following factors:

Capital preservation over returns

As a priority we focus on preserving capital. We are fairly open to leaving opportunities where we are not convinced even if this means missing a substantial upside. We focus on creating a risk / return matrix for each opportunity in which we are investing and look obtaining for a favourable ratio.

Look for intrinsic value than follow the herd

We are not afraid to swim against the tide as long as we see value in the opportunities. Many a times we have seen us holding asset class / sectors / stocks that have been shunned by the market and available at dirt cheap valuations on near term concerns on earnings

Focus on absolute returns than relative returns

We believe that every opportunity needs to be looked from the lense of absolute returns and there could be times when there are very miniscule set of opportunities in an asset class or vice versa. We are unafraid to take aggressive calls in that environment to exit / enter the asset class in a big way in that environment. Taking cash calls is also part of the core strategy

Manage with a long term view

We are willing to take a long term view ( 1 yrs – 3 yrs) and are looking to invest in opportunities beaten down by the market on short term concerns

Combination of micro and macro research

Our investment process starts with a macro call on the economy ( local and global), valuation of different asset classes, our views on asset classes and sectors that are likely to do well over the next few quarters / couple of years and then it boils down to individual stock selection which will benefit from these trends. At a micro level our investment philosophy is guided by the value investing principle of buying a security at a discount to its intrinsic value. When we invest in a stock, we buy the business and not the stock. We remain agnostic to the daily fluctuating stock price as long as we continue to believe in the business. We view market volatility as a friend that allows us to buy securities at a discount or sell at a premium to intrinsic value.

Our Team

Prudent Investment Managers is the brain child of Prashasta Seth. An alumnus of IIT Kanpur and IIM Ahmedabad he has spent more than 20 years in the financial services industry. Prior to founding Prudent Investment Managers,LPP Prashasta was the CEO and CIO at IIFL Asset Management. Under his leadership the AUM of IIFL AMC grew from less than 500 crores to more than 25000 crores which was achieved by launching innovative products in the Pre IPO space and new strategies like hedged investments through puts which allowed investors to participate in upsides while being protected on the down side

He was involved in actively launching and managing various funds at IIFL AMC and during his
tenure IIFL funds were rated in the top quartile in terms of performance. IIFL PMS which was started under his leadership was awarded Rank 1 on Risk Adjusted returns* across all categories by PMS AIF World.
*- 5 year period

Get in touch

5th floor Quest Coworks , Technolpolis Knowledge works
Mahakali Caves Road Chakala
Andheri East
Mumbai

+91-22-68620348

Prashasta.seth@prudentim.com

We are Prudentim