IndoWest Equirus Small & Mid-Cap Strategy
Strategy Overview
Product Details
Product Type
Tracker Certificate (SSPA Code 1300)
ISIN
Custodian / Paying Agent
This strategy provides access to Indian small and mid-capitalisation companies through a fundamental, research-driven investment approach. The process is designed around company-level analysis, evaluation of governance quality, and long-term assessment of earnings and capital allocation.
Investment Philosophy
The Indian small and mid-cap strategy follows a bottom-up, earnings-driven approach, implemented by Equirus Group as portfolio manager. The objective is to hold a concentrated portfolio of companies that combine durable growth, high cash-flow conversion and disciplined capital allocation, purchased at valuations that leave room for long-term compounding rather than short-term speculation.
High and Sustainable Earnings Growth
The process focuses on businesses where earnings can grow meaningfully over time, supported by clear drivers such as market expansion, share gains or product innovation. As a guiding rule, the process seeks companies with evidence of strong historical growth and the potential to compound earnings at mid-teens rates over a multi-year period.
Quality of Growth and Cash Generation
Reported profits must translate into cash. The process prioritises companies with robust operating cash flow relative to profit and attractive incremental returns on capital employed. Balance-sheet strength, prudent leverage and transparent accounting are core requirements, not afterthoughts.
Reasonable Valuations and Business Resilience
The process selects investments where valuations are compatible with the assessment of long-term economics. Preferred candidates operate in large or growing addressable markets, hold or can attain leading positions in their segment, and exhibit low structural business risk. The process aims to avoid paying for hope or momentum.
Idea Generation and Initial Filtering
The investable universe consists primarily of Indian small and mid-capitalisation companies with sufficient liquidity. Within this universe the process looks for:
- Consistent growth in revenues, earnings and returns on capital
- Sound balance sheets and evidence of conservative financial policies
- Corporate events or changes that can unlock value
- Companies benefiting from long-term themes such as formalisation, manufacturing relocation, or digital adoption
At the same time, businesses with poor earnings quality, weak capital allocation, structurally low growth, excessive leverage or valuations considered unsustainable are explicitly filtered out.
360° Fundamental Research
Before a stock enters the portfolio, it is subjected to a comprehensive due-diligence process that combines:
Business & Management
- Industry structure, addressable market, competitive position
- Management track record, capital allocation decisions
- Treatment of minority shareholders and governance quality
- Board independence and regulatory history
Financial & External Validation
- Cash-flow generation and return on capital metrics
- Balance-sheet strength and working-capital discipline
- Disclosure quality and accounting transparency
- External validation through competitors, suppliers and distributors
Only businesses that meet the thresholds on all these dimensions progress to the investment committee.
Portfolio Construction and Risk Management
Position sizes and portfolio construction reflect conviction, liquidity and the correlation of risks across holdings. The portfolio typically holds a limited number of names, allowing each to contribute meaningfully while maintaining diversification.
Risk is addressed primarily through the quality of the businesses owned, the price paid and a clear exit discipline. Positions may be exited or reduced if the original investment thesis weakens, if incremental returns are likely to fall below the hurdle, or if a better risk-reward opportunity is identified elsewhere.
The portfolio is not managed via macro calls, short-term market timing or large cash positions. The focus remains on owning well-researched companies through market cycles.
IndoWest Capital provides cross-border structuring and sponsorship; it does not provide discretionary portfolio management or trade execution.
Historical Performance (USD)
Indexed to 100 at inception
Historical Performance — As of 30 November 2024
Source: Equirus Long Horizon Offshore Investments AIF, NAV history
Historical NAV of the underlying AIF strategy, shown for informational purposes only. The Tracker Certificate replicates this strategy via a structured product wrapper, and its performance may differ from the underlying. The complete product terms are set out in the Final Terms, available from Banca Credinvest SA. Past performance is not a reliable indicator of future results.
Key Figures
ISIN Code
Bloomberg Ticker
PMONEP 0 08/25/30
Structure and Access
Portfolio management and execution are performed by Equirus Group, a SEBI-registered Portfolio Manager. IndoWest Capital acts solely as sponsor of the structured product linked to this strategy and does not manage or execute the portfolio.
Access to the strategy is provided through a private-placement structured product. Subscription and operational details are made available by the paying agent. IndoWest Capital does not accept subscriptions on this website.
External Information
Further information regarding subscription and operational aspects is available through the paying agent, Banca Credinvest SA, Lugano (Switzerland).
IMPORTANT INFORMATION
The Tracker Certificate referenced on this website is offered exclusively through Banca Credinvest SA (Lugano), the Issuer's Calculation and Paying Agent. It is intended solely for professional and institutional investors as defined under FinSA (Switzerland) and equivalent qualified-investor regimes. It is not available to retail investors in the EEA or UK, or to US persons. The Tracker is not a collective investment scheme and is not supervised by FINMA. Investors bear issuer risk on P.M. One PCC Limited (Guernsey) and may lose their entire investment in a worst-case scenario. For full terms, refer to the Final Terms available through the Issuer.
This website is informational only. It does not constitute an offer or solicitation. For product subscription, contact Banca Credinvest SA.