Our Approach

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Investment Approach

At EIML, our stock evaluation modules are significantly different from traditional investing strategies. Our investment portfolios are based on two distinct approaches – Classical Alpha and Smart Alpha.

Classical Alpha

Our endeavor is to generate alpha through pure bottom-up stock picking which is strongly distinguished and fortified by E-Qual Risk, our proprietary risk mitigation module. E-Qual helps us evaluate and compare listed companies on a series of qualitative and quantitative governance aspects, including management integrity and capability, wealth distribution, investor communication and liquidity.
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Smart Alpha

The Smart Alpha approach seeks to mitigate selection and allocation biases that Fund managers are vulnerable to. Our unique stock selection and evaluation process, backed by an effective risk management module help us to systematically eliminate “Selection Bias” and “Allocation Bias”. We focus on achieving an equi-weighted portfolio using a rigorous investment methodology based on management credentials, leadership, market cap, earnings growth, and valuations.
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Classical Alpha

Here we generate alpha through pure bottom-up stock picking which is strongly distinguished and fortified by E-Qual Risk, our proprietary risk mitigation module which helps us evaluate and compare listed companies on a series of qualitative and quantitative governance aspects, including management integrity and capability, wealth distribution, investor communication and liquidity.

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Smart Alpha

Fund managers are vulnerable to selection bias and allocation bias and the Smart Alpha approach seeks to mitigate these biases. Our unique stock selection and evaluation process, and an effective risk management module help us to systematically eliminate “Selection Bias” and “Allocation Bias”. We focus on achieving an equi-weighted portfolio using a rigorous investment methodology based on management credentials, leadership, market cap, earnings growth, and valuations.

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E-Qual Risk

Our fund managers use proven, indigenous processes to focus on quality stocks that ensure capital appreciation for our clients. We employ multi-pronged investment strategies and leverage proprietary models like E-Qual Risk to deliver consistent long-term returns.

E-Qual Risk (Emkay Qualitative Risk Analysis) is the first-of-its-kind risk evaluation model in the country for quantifying and thereby objectively evaluating the governance aspect of management quality. This proprietory model facilitates a comparative analysis of the entire spectrum of stocks and helps avoid low quality stocks from entering the portfolio, thereby minimizing risk. The module has successfully ensured zero blowouts in our portfolios, thereby significantly preserving our clients’ capital.

E-Qual Risk – How it Works

Under the E-Qual Risk module, companies are scored on aspects like management’s integrity and capability, wealth distribution, investor communication, and liquidity so that companies with accountability issues, ethical violations, conflict of interest and other corporate governance issues are systematically excluded from the portfolios.

Sachin Shah, Fund Manager at Emkay PMS speaks about E-Qual Risk