Complete Circle Stellar Wealth PMS invests in emerging and fundamentally strong businesses in India based on variant perception and long-term structural trends. Our endeavor is to add maximum value to clients in their wealth creation journey through quality research, focus, and a disciplined approach to investing.
Complete Circle Stellar Wealth
A portfolio management service for Indian citizens and NRIs which is modeled after the Buffett Partnership fee structure. Investors in the PMS pay no management fees and we only get compensated for returns that exceed 8% annually, subject to a high-water mark provision. We have a 0/8/20 fee structure - zero annual fee and 20% profit sharing on the returns above 8%. For example, if the PMS returned 18% for the year, then the performance fee would be 2% (18% minus 8% equals 10%. 20% of 10% is 2%). And if the PMS returned 8% or less, then it would receive no fees at all.
Investment Objective
The PMS seeks to preserve capital and achieve long term capital appreciation with controlled risk by focusing on the margin of safety of an investment. Our mission is to significantly grow the buying power of our investors over a multi-year timeframe. We seek to achieve this objective using a bottom-up fundamental approach executed in a disciplined and consistent manner. We have a clear mandate in terms of our investment operations – to compound capital over decades. Although daily reports are made available online to our clients – we do not manage our investments to maximize short-term returns. We have no control over what returns may look like on a monthly/quarterly basis and we don’t want to confuse the ability to measure these statistics with the intention to manage them. Our long-term investment approach works only over multi-year horizons. By consequence, our long-term returns are strongly tethered to the underlying fundamental performance of our portfolio companies over the coming years.
Investment Approach
We invest in emerging and fundamentally strong businesses based on variant perception and long-term structural trends. The former category of investment requires an “analytical edge” – having a differentiated view on the short to medium-term trajectory of a business, while the latter category requires a “behavioral edge” — the patient mindset, discipline, and willingness to take a long-term view about the intrinsic value of a business. We view risk as the probability of permanent loss of capital, not the temporary swings in a security’s market price. We actively seek undervalued and attractive investments in the Indian stock market that can be purchased at discounts to their intrinsic value. Our PMS is unconstrained by sector and style, and we invest our capital in our best ideas. We employ a tax efficient approach given our long-term investment horizon.
Investment Philosophy
Our portfolio would be a blend of ‘Value + Growth’ opportunities and ‘Megatrends’. The endeavor will be to maximize return and minimize risk. We follow a market cap agnostic and sector agnostic approach. While there will not be any formal hard cap on the allocation within the portfolio to any single stock or sector, prudence will be maintained at all times – with an emphasis on risk management, longevity, and durability.
We assess decisions of a company’s management team based on their impact on the long-term earnings power of the business – not on whether said actions affect the next quarter’s earnings negatively or not. Short-term accounting appearances are sometimes different from long-term economic realities. In pursuit of above-average long-term returns we will have unconventional ideas and we will see periods of short-term volatility. At such times we will remain unfazed and given the opportunity, we will build on our highest conviction ideas. Our approach, if deployed well, is designed to help us deliver superior outcomes over the long-term. We can only invest successfully when our investors understand these foundational principles of our investing approach.
Under the aforementioned investment approach, investments in the PMS product shall be subject to market risk, unsystematic risk, liquidity risk, regulatory risk, currency, credit events, and more briefly stated in the PMS disclosure document.
Get In Touch
All clients have an option to invest in Complete Circle Stellar Wealth PMS directly, without intermediation of persons engaged in distribution services.
An individual who is a citizen of India or an NRI, a HUF, Partnership, Company or any other Body Corporate in India can invest in our PMS, subject to the minimum investment requirement of INR 50 lakhs as per SEBI guidelines.
If you would like to invest in Complete Circle Stellar Wealth PMS, please fill in the below form and submit.
We will get in touch with you, ask for basic KYC details and proofs, and send you the pre-filled documents for you to go through and sign. Once we receive the same, we will process the documents, open your account, and initiate fund transfer.
