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
Long Only Funds
Alternative Investment Funds- AIFs
Large Wealth Advisors (with direct equity advisory capabilities/offerings)
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).
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.
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
Quality of Earnings – Research Outcomes on an Indian Jewelry Business
Chart Source: Factset EBV: Estimated Business Value Range
The following analysis was drawn from Multi-Act’s research:
No Operating Cash generation
Acquisition of Promoter Group Company at high valuation
Increase in gross margins with drastic rise in inventory and receivables
Poor M-score in most years
Increasing pledged shares of promoters
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)
Portfolio Management Services (SEBI Registration No. INP000002965) are offered through Multi-Act Equity Consultancy Private Limited (CIN: U67120PN1993PTC074692), which is a wholly-owned subsidiary of Multi-Act Trade and Investments Private Limited; Investment Advisory Services (SEBI Registration No. INA000008589) are offered through Multi-Act Trade and Investments Private Limited (CIN: U65920MH1997PTC109513).