About Us

 

Savvy Capital Advisors LLP.

We are a SEBI registered Portfolio Manager (INP000005331) based in Mumbai, India. We manage client equity portfolios. Our advice is based on fundamental analysis of companies.

About the Portfolio Manager
Name: Samir V Patel
Education: MBA (ISB -2004), BE Comp (Mumbai Univ-1997)
Brief Experience: I started working with Tata Infotech (merged with TCS later) after my engineering in 1997. In 1998, I joined Covansys (merged with CSC later) in USA as IT consultant & worked there till 2003. My US exposure has definitely helped me become a better investor. After completing my MBA from ISB in 2004, I started my involvement in stock markets on full time basis. I ventured into broking, trading & advisory. After going through various cycles & first-hand experience of different aspects of markets, I focused myself on investment advisory in 2012. Although I was passionate about stocks since my engineering days, it took a while to focus my energy on my true calling i.e. long term investing. I became a SEBI registered Investment Adviser in January 2014. After 3 years under advisory, I have now moved to manage portfolios under discretionary PMS.

Our Performance

  • 2012 to 2016 +45.2% CAGR

  • 2016+7.8%

  • 2015 +19.5%

  • 2014 +124.3%

  • 2013 +21.0%

  • 2012 +84.8%

Knowledge

This section is for understanding various asset classes & my thoughts on some of them.

Insurance – Insurance means Insurance & not savings. It’s not an asset class, we have made it one. In India we have totally misunderstood the concept of insurance. Insurance means if something goes wrong, you are protected financially. I want to particularly focus on life insurance as that is the most problem area in terms of allocation. We have policies that have some money back at the end of the term. Most people buy these policies with the thought in mind that I will get back my money at the end of maturity. But that is the most wrong way of buying insurance. If you calculate the yield of the money received back, it is no more than 7%. This is the most inefficient way to put your savings to work, particularly when you are investing for 20+ years. Even debt products will give higher yields. But the best way to allocate your money would be to buy pure term insurance for the sum assured & rest money should be deployed in equities via ETFs (Exchange Traded Funds). ETFs are products that replicate the return of the index. So products like NiftyBees should be considered that gives the same return as Nifty Index with the least expense ratio. Equity index has given 14.5% over last 10 years & close to 17% return over last 30 years. When compounded over 25 years, the result is financial independence. I love the following chart of power of compounding.

Power of compounding – This chart shows the number of times your money will grow at various rate of interest. For example – At 15% interest for 20 years, your money will grow to 16 times the original amount.

Years/Rate 7% 9% 10% 15% 17% 25% 30%
5 year 1.4 1.5 1.6 2 2.2 3 3.7
10 year 2.0 2.3 2.6 4 4.8 9.3 14
15 year 2.8 3.6 4.2 8 10.5 28 51
20 year 3.9 5.6 6.7 16 23 87 190
25 year 5.4 8.6 10.8 33 51 265 705
  Insurance FDs Gold Real Estate Equity Index    

Gold – Again another asset we are in love but totally wrong for long term savings. Gold may be good for showing but not for savings. Let’s look at the returns for gold. How many of you know the value of 10 gms of gold in 1980 in INR? The price was Rs 1000 / 10 gms of gold. Today(2013) that value is approximately Rs 30000 after steep rise in last 5 years. That means your investment even considering this steep rise is up 30 times in 33 yrs. Yield is 10.8%. That is better than inflation but way below equity returns. Major factor for gold returns has been the INR depreciation which has gone from Rs 8/$1 to 64/$1 in the same timeframe. Sensex was 100 in 1979 & is now approx 21000 with no rise in last 5 years. So the index is up 210 times in 34 years. Yield is 17.0%. Dividends not included.

Real Estate – Another asset class which has given more returns compared to debt/gold but less than equity over long term. Also real estate investment is illiquid & require bigger amount of sum to be invested. It’s difficult to gauge the return as no index is available for long timeframe. My calculation shows yields of 14.5-15% for 30 yrs (Rental income not included). That is higher than other asset classes but less than equities. Some pockets of real estate may have got a little higher return but to identify those would not be easy. Even real estate follows cycle & most residential properties may have just completed a high cycle in 2012. Residential real estate can give below average returns at least till 2020.

Equities – This is the best asset class to own over the long term. With Exchange Traded Funds, it is easier to own a diversified portfolio of businesses at minimal cost. The index has given 17% returns over the last 30 yrs. As the time in the market increases, the volatility in return decreases. Actually there is no loss of capital if invested for at least 12 yrs even from market peaks. The following table shows the range of returns for Indian markets

Time Min Return Max Return
1year -54% +268%
2 year -26% +143%
7 year -8% +43%
12 year +2% +34%
15 year +11% +28%
20 year +13% +21%
25 year +15% +18%

Why do active investing? – The simple reason is to get higher returns than benchmarks. But it’s difficult to do that on amateur basis. This is where a professional can help. I am passionate about investing & have been involved in markets on professional basis for almost the last 10 yrs. Before that I was an amateur investor for 8 yrs. I have a long term focused approach towards identifying businesses with great potential for returns. Lots of patience & discipline is required. It would be unfair to say that only fund manager should posses those skills. Investors will also need to have them apart from trusting the fund manager. I have embarked on this lifelong journey of investing & I welcome you to join me. If you have more questions in these regard, please write to me.

 

Performance

Year Model Portfolio S&P BSE SmallCap S&P BSE MidCap S&P BSE Sensex
CAGR since 2012 +47.7% +23.0% +23.0% +14.1%
1Q2018 -11.3% -11.6% -10.4% -3.2%
2017 +60.6% +59.6% +48.1% +27.9%
2016 +7.8% +1.8% +8.0% +1.9%
2015 +19.5% +6.8% +7.4% -5.0%
2014 +124.3% +69.2% +54.7% +29.9%
2013 +21.0% -11.2% -5.7% +9.0%
2012 +84.8% +33.0% +38.5% +25.7%
  • Portfolio consists of 18 stocks as on 31st Dec 2017. The above return is computed on the model portfolio maintained since Jan2012 & the same was advised to the client. It is not audited.
  • Above returns do not include dividends or fees.
  • Performance of individual accounts may vary depending upon the timing of their investment, the effects of additions, and the impact of withdrawals from their account.
Following is an indicative list of firms where we have invested over the last few years. Prices are adjusted for stock split/bonus/spl dividend.
Company Buy Date First Buy Price Last Sell Date Avg Sell Price
Havells Aug-2009 30 Nov-2012 125
Kaveri Seeds Oct-2010 69 Dec-2014 818
AmaraRaja Batt Nov-2010 92 Nov-2015 680
Vguard Ind Nov-2010 12 Nov-2013 32
Ashiana Hsg July 2011 31 Sep-2015 221
RSSoftware Apr-2012 34 Oct-2014 299
Zensar Tech Apr-2012 229 Aug-2015 813
Heritage Foods Sep-2012 78 Holding  
Eicher Motors May-2013 3030 Sep-2016 26200
Federal Bank Sep-2013 26 Aug-2016 66
J B Chem & Pharma Oct-2013 88 Holding  
Escorts Dec-2013 130 Jul -2017 693
Strides Arcolab Mar-2014 260 Sep-2017 969

Testimonials

I know Samir since last 14 years and I rate him as one of the best stock pickers and equity investment profesional I have come across. His ability to go into details and still able to have a macro picture of the sector, company and map it with the competing companies is astonishing. Here I must say that I have substantial exposure myself in direct equities and mutual funds and I make investments after lot of research. However Samir’s portfolio has beaten my portfolio by wide margin as much as that I have almost stop doing direct investments and making all investments through Samir. I wish him best in times to come.
Alok Aggarwal - CEO, Brookfield India

Samir, I know him since more than past 18 years. He is a gem of a person. Honest, sincere, enthusiastic and patient at the same time. Let me put it this way, the passion and the dedication in his work always shows. Being into Stock Markets myself I have not met a person like him with such great talent. His methods are exceptional with meticulous attention to detail to pick the right stocks, lead to almost always outperforming the markets. His in-depth analysis, an amazing 20/20 foresight and his insight in markets, it is hard to go wrong. Since the time he started his advisory I have stopped looking at stocks for investment and gave him my portfolio.
Pravin Mehta – Chairman & Managing Director, India Advantage Securities Ltd.

Not everything is possible by everyone and we all learn this hard way by trying ourselves. Investment is also in the same category where we try and end up thinking that one will always fail and loose in market. My simple moto have been if you are not good at something and don't have all the necessary knowledge, spend time to find the best person in town who has the passion and understand the markets and is really focused on finding the right investments opportunities. I see the needed qualities of focus, passion, dedication and patience in Samir to make my money work for me and make me financial independent.
Jigar Shah – Executive Director, Investment Bank

"Committment, Modesty and Indepth financial knowledge is what defines Samir. He has a great analytical mind and uses foresight and presence of mind to his advantage. To his clients, Samir is more than a friend and thats what makes the Client-Investment Adviser relationship more interesting and rewarding. I wish the very best for him."
Ashish Parmar – Director, Fiduciaa Ventures

I believe in WORKMANSHIP and Samir is one of the best examples of it. Honestly, I am totally relaxed by choosing Samir for my PMS. My returns are excellent & I like the transparency. I was in search for a second source of income & Samir has obliged in the best possible way.
Dr. Subir K Patel – Consultant Anesthesiologist

 

Services

  • We currently offer only Discretionary PMS.
  • Minimum account size: Rs 50,00,000 (50 lacs). 25 Lacs to be invested upfront & remaining 25L in a one year period.
  • Clients can also follow SIP (Systematic Investment Plan) to build up their portfolio.
  • Clients are free to increase or decrease the amount under PMS subject to minimum requirements.
  • Most profit generated is long term & is exempt from capital gains tax under current Indian laws.

Management Fees:
Only variable fee structure. No fixed or management fee. Annual fees of 20% of the profit above 10% (compounded) threshold return. High watermark of 10% CAGR. Fees will be applicable on the portfolio value & dividends accrued at the end of the year. Service tax will be applicable as per law.

Client Disclosure Document

Investment Approach

  • Buy good compounding growth ideas.
  • Companies where the prospect look better than the understanding of the market.
  • Look at individual companies available at reasonable valuation. Companies that can double/triple profits over the next 3-5 yrs.
  • Look at buying small/medium firms with structural growth drivers. Take advantage of the enormous growth potential available in growing economy like India.
  • Selling will take into consideration the behavior of markets. It is preferred to sell late than early.
  • We will remain in liquid funds if we are not able to buy attractive businesses at reasonable valuations. All cash is held in LiquidBees (Liquid funds are generating around 6% returns at present).
  • Invest in steps. Our average holding period is around 4 years. We follow averaging up as a strategy.
  • We determine value buy price after every quarter results or any significant event. This is used to initiate position in new client accounts. So an old position in a new account will be bought only below the value buy price. Hence new client portfolios may take time to sync with older clients. Sometimes it may take couple of years.
  • All client accounts will eventually match the model portfolio.

 

Contact Us

Keep in Touch With Us

Savvy Capital Advisors LLP
Address: Off no 1, Shubham Apts,
Opp ESIS Hospital, Akurli Road, Kandivali(East),
Mumbai - 400101

Phone: 91-22-67106103/04/05

Email - info@savvycapital.in