investment strategy: ETMarkets PMS Talk: Wallfort PMS focuses on Small & Midcaps with ‘Four P’ investment strategy, explains Bhavya Shah

Please take us through the recent performance of the fund and for the year 2024?

2024 was a year of market volatility, but Wallfort PMS navigated it well by focusing on fundamentally strong businesses at reasonable valuations. Our Diversified Fund delivered a 72% return, significantly outperforming the BSE 500 TRI benchmark (15.81%). Our disciplined stock selection—prioritizing management strength, strong balance sheets and sustainable earnings—helped generate substantial alpha

How much money one would have made in 2024 – if they invested say Rs 1 cr. which is the minimum ticket size of the investment?
An investor who allocated Rs 1 crore to our Diversified Fund at the beginning of 2024 would have seen their investment grow to approximately Rs 1.72 crore, assuming they remained invested throughout the year. However, past performance is not a guarantee of future returns, and market conditions can change.What is the investment objective?
At Wallfort PMS, our investment objective is to maximise returns through long-term investment in small and midcap stocks along with prudent risk management and investment allocation strategy.

Our investment approach follows the Four P Investment Strategy covering Promoter, Product, Profitability and Pricing. Our team strives hard to identify great businesses and promoters early as compared to other market participants to deliver alpha to our investors.How do you pick stocks for the fund?
Following the Four P Investment Approach, we focus on companies with great leadership and top management, strong products or services, business profitability, growth drivers etc. Our team spends a great amount of time to understand and develop conviction on the above mentioned factors before we decide on picking stocks.

The fund is primarily a small & midcap fund. Given the turmoil we have seen in this space – how are you planning to play this space in 2025?
Even Infosys and HDFC were small & midcap stocks once. We invest with the long-term horizon which is critical for investors like us who are focused on small and midcap investment.

Instead of being distracted by volatility, investors must focus on the quality and growth playout of the businesses they are invested with that will help them stay invested and achieve substantial returns.

Price eventually catches up the performance and hence stay put if the company is delivering in terms of business growth and profitability.

The year 2025 started on a volatile note – what is your take on markets?
Markets have started 2025 on a volatile note. The recent correction in India is influenced by over valuation, global uncertainties, interest rate movements etc.

While we strongly believe in the long-term India story, however from now on the rally will not be uniform and stock selection and pricing will be the key driver of outperformance.

Which sectors are you currently overweight on or you have maximum weightage?
We are sector agnostic and well diversified however looking at our current portfolio we are fairly overweight on telecom equipment, consumer durable, speciality chemical.

Any sector which one could consider pairing positions from?
Avoid sectors where valuations are unreasonably high and the leaders of the sectors are struggling to deliver growth. Value investing will be your friend in need and protect you from investment urges driven by fear of mission.

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