Prabhudas Lilladher PMS presents AQUA (Adaptive, Quantitativ, Unbiased and Alpha) – an equity PMS strategy that uses a quantitative approach with fundamentals.
It aims to provide investors with a flexible capped equity portfolio independent of style, industry, size and benchmark, capable of dynamically adapting to changing market cycles and investment regimes.
Launched in June, Soft has a minimum investment of Rs 5 crore in the AQUA strategy and currently has Rs 530 crore in assets under management.
The investment strategy’s portfolio will contain 30 stocks and will be reviewed every two months for rebalancing.
AQUA relies on a dynamic multi-factor approach that integrates fundamental, valuation, macro, liquidity, industry, risk and technical analysis to construct a diversified portfolio of selected stocks from top 500 listed companies.
In-house software crunches reams of data, identifying patterns and relationships that might otherwise go unnoticed.
Siddharth Vora, director of investment strategy and fund manager Prabhudas Lilladher at PMS, said quantitative investing has a more sophisticated approach to investing as it uses data and rigorously tested scientific methods to drive investment decisions.
The discipline of the quantitative approach ensures repeatable investment results, delivering sustainable outperformance for investors, he added.
The AQUA strategy has delivered a 15% return over the past two months, compared to a 7% return for the benchmark NSE 500, resulting in an 8% alpha.