Independent Equity Research for Investment Managers (IRIM)

Multi-Act’s strong, unbiased and methodical Independent Equity Research for Investment Managers (IRIM) adds an extra dimension to the research conducted by both sell-side and internal buy-side teams, thus enabling fund managers to build their investment arguments and portfolios with more confidence.

Our research has been useful to:

  • Mutual Fund AMCs
  • Hedge Funds
  • Long Only Funds
  • Alternative Investment Funds- AIFs
  • Large Wealth Advisors (with direct equity advisory capabilities/offerings)
  • Family Offices

Philosophy/Framework

Merging Fundamental, Technical, Quantitative and Behavioral analyses, Multi-Act ensures a rational and risk-controlled approach to investing. With the Global Rational Analysis Framework- GRAF at the core of the investment philosophy, the expert analysts at Multi-Act study and monitor key elements systematically over multiple market cycles using years and years of fundamental data (typically 15 years or more).

SERVICE OFFERINGS

Quality of Earnings and Corporate Governance check

  • Gauging the extent to which a company’s financial statements reflect true and sustainable economic earnings.
  • Identifying potential investing landmines.

Quality of Business assessment

  • A methodical grading process based on quantitative and qualitative assessment of a business.
  • Process driven approach to minimize inherent behavioral biases involved while assessing business quality.

Valuation Ranges

  • Using business appropriate valuation tools based on Bruce Greenwald’s ‘3 Tranche Valuation Framework’.
  • A mechanism to suggest potential rewards and risks at any given price point.

Investment Decision Support

  • A decision making structure that brings fundamental, technical, quantitative and behavioral indicators together.
  • Focuses on portfolio construction and risk-adjusted returns.
WHAT DOES MULTI-ACT PROVIDE UNDER IRIM?
WHY MULTI-ACT IRIM?
  • Rigorous, consistent and process-driven buy-side research
  • Investment mandate agnostic
  • Fixed fee, incentives not linked to AUM size or portfolio churn
  • Minimalized behavioral biases
  • Expands research universe
  • Customized services

Contact Us

Get in touch with us for customised Advisory Solutions and meet your investment goals

CASE  STUDY

Quality of Earnings – Research Outcomes on an Indian Jewelry Business

Chart Source: Factset           EBV: Estimated Business Value Range 

OBSERVATIONS :

The following analysis was drawn from Multi-Act’s research:

  • No Operating Cash generation
  • Acquisition of Promoter Group Company at high valuation
  • Deferring expenses
  • Increase in gross margins with drastic rise in inventory and receivables
  • Poor M-score in most years
  • Increasing pledged shares of promoters

CLIENT  TESTIMONIALS

Our association with Multi-Act goes a long way back from mid 2000s onwards. As a user of Multi-Act’s equity research services focusing on quality of earnings with forensic approach, we have benefitted from their support and high quality work.

Rajesh RanganathanDirector, Doric Capital Corporation

Multi-Act has surprised me with the depth and breadth of its data and fact checking for the companies I have requested. Very hands on, very co-operative and very thorough. An all-round good product!

Anuj DidwaniaFund Manager, Red Art Capital

After having spent considerable years in the Equities Research industry, my association with Multi-Act (MA) has been the most satisfying one.

R BalakrishnanIndependent Consultant, 30 yrs. in financial markets. Founding Team Member (Crisil), Head of Research (DSP-ML), CEO & CIO (First India Mutual Fund –acquired by Sahara subsequently)