| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.9% | - | -0.6% |
Gymkhana Partners outperformed major Indian equity benchmarks during H1 2026, declining only 0.6% in U.S. dollar terms versus declines of 13% for the BSE Sensex and 9% for MSCI India. This performance is consistent with the firm's 13-year track record of 11.9% compound annual returns net of all fees and taxes, exceeding all 56 U.S. dollar-denominated India-dedicated mutual funds and ETFs. The portfolio trades at roughly 15 times forward earnings, significantly below major indices despite faster earnings growth, as relentless foreign selling has driven Indian equities to 14-year lows in overseas institutional holdings. The manager remains virtually fully invested and substantially added to healthcare positions Indegene and Medi Assist Healthcare Services while trimming positions following rallies that outpaced fundamentals. India's world-leading growth is underpinned by youthful demographics, accelerating urbanization, and innovative digital infrastructure. The manager believes AI's embedding into India's economy will further accelerate earnings compounding and views current valuations as an opportune entry point for long-term investors.
Gymkhana Partners invests in high-quality, rapidly-growing Indian businesses trading at substantial discounts to intrinsic value, with the portfolio at roughly 15x forward earnings despite faster earnings growth than major indices, positioning the fund to benefit from India's world-leading GDP growth underpinned by youthful demographics, accelerating urbanization, innovative digital infrastructure, and prudent macroeconomic governance.
The manager is as bullish as ever with respect to Gymkhana's portfolio companies and believes today represents an opportune entry point for long-term-minded investors seeking to participate in India's powerful growth story. The manager expects portfolio companies to continue delivering robust growth in earnings, the ultimate driver of long-term equity returns, and believes the embedding of AI into India's economy will further accelerate earnings compounding that has historically driven Indian equities' robust long-term returns.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 2 2026 | 2026 Q2 | ATUL.NS, AVALON.NS, BELRISE.NS, CONCOR.NS, ELGIEQUIP.NS, EMMVEE.NS, FINPIPE.NS, GALAPREC.NS, INDGN.NS, MEDIASSIST.NS, PANAMAPET.NS, SPECTT.NS, SUPRIYA.NS, ULTRAMARINE.NS, WABAG.NS | AI, healthcare, India, industrials, Reform, small caps, value | - | Gymkhana Partners significantly outperformed Indian equity benchmarks in H1 2026 with its portfolio of high-quality businesses trading at 15x forward earnings despite faster growth than major indices. The manager remains fully invested and bullish, substantially adding to healthcare positions while trimming stocks following rallies. India's world-leading growth trajectory combined with bargain valuations creates what the manager views as an opportune entry point for long-term investors. |
| Apr 9 2026 | 2026 Q1 | ATUL.NS, BBL.NS, CHOLAFIN.NS, DHANUKA.NS, JAMNAAUTO.NS, PRUDENT.NS, SANSERA.NS, SUPRIYA.NS, SUVEN.NS, ULTRACEMCO.NS | defense, emerging markets, healthcare, India, industrials, value | - | Gymkhana Partners down -11% YTD amid trade tensions and energy disruptions, but maintains conviction in undervalued Indian portfolio trading at 14x forward P/E. Firm actively buying defense, healthcare, and industrial names while remaining fully invested. India's structural growth drivers including demographics and infrastructure development expected to drive long-term outperformance despite near-term macro headwinds. |
| Jan 20 2026 | 2025 Q4 | AMZN, ASTRA.NS, BHARATBIJ.NS, FINPIPE.NS, GOOGL, INTC, JAMNAUTO.NS, MSFT, RELIANCE.NS, SANSERA.NS, TATAELXSI.NS, UNIMECH.NS | defense, growth, India, Manufacturing, Reform, small caps, value | - | Gymkhana Partners focuses on undervalued smaller-cap Indian businesses, delivering 12.5% compound annual returns since 2013 despite 2025's 11% decline. India's 8.2% GDP growth and transformative reforms drive structural opportunities. Portfolio trades at 15x forward earnings with significant discounts to intrinsic value. Recent market weakness creates attractive entry points in defense, aerospace, and industrial companies. |
| Sep 30 2025 | 2025 Q3 | AMZN, GS, HCLTECH.NS, INFY, JPM, MSFT, ORCL, RR.L, TCS.NS, TECHM.NS, WMT | defense, domestic growth, India, small caps, tariffs, Trade Policy | - | Gymkhana Partners maintains strong conviction in India's small-cap equity market despite recent tariff pressures and rupee weakness. The fund has shifted toward defense and aerospace companies benefiting from indigenization while reducing exposure to larger-cap positions. India's domestic-driven economy and diversified trade relationships provide resilience against external headwinds, supporting long-term growth prospects. |
| Jul 1 2025 | 2025 Q2 | - | Fed policy, rates, rebalancing, technology, Valuations | - | Fed Chair Powell's warning about elevated stock valuations creates investor uncertainty despite recent rate cuts. While tech stocks show stretched multiples driven by AI enthusiasm, historical evidence suggests market timing based on valuations is counterproductive. The letter advocates maintaining long-term discipline through systematic rebalancing rather than attempting to time market peaks and valleys. |
| Mar 21 2025 | 2024 Q4 | - | Employment, Fed policy, Gdp, inflation, sector rotation, technology, Trade Policy | - | Markets surged in Q2 2025 with S&P 500 up 10.57 percent and Nasdaq gaining 17.75 percent despite trade policy volatility. Technology led with 22.64 percent gains while seven of eleven sectors advanced. Initial tariff disruption gave way to strong recovery after policy pause announcement. Fed maintains rates but signals two potential cuts ahead. |
| Apr 16 2024 | 2023 Q4 | - | Historical Returns, interest rates, Market Highs, tax policy, Trade Policy | - | Markets continued their upward trajectory in Q3 2025, driven by favorable tax legislation, trade deals, and Fed rate cuts. Despite reaching new all-time highs, historical data shows that record highs do not predict poor future returns, with post-record performance actually slightly outpacing average returns over multiple time horizons. |
| Apr 27 2023 | 2022 Q4 | EBECK IN, GRAUWEIL IN, IMPL IN, RHIM IN, SPLPETRO IN, SUPRAJIT IN, UNIENTER IN | Currency Risk, India Equities, Infrastructure Investment, Supply Chain Diversification, Valuation Discount | - | |
| Dec 31 2021 | 2021 Q4 | BJHI IN, GODREJIND IN, GRAUWEIL IN, REPCO IN | Currency Volatility, emerging markets, India Equities, Long-Term Growth, Small Cap Value | - | |
| Dec 31 2020 | 2020 Q4 | - | emerging markets, India Equities, Long-Term Growth, Small Mid Caps, Structural Reforms | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
IndiaGymkhana Partners focuses exclusively on Indian equities, which have underperformed in H1 2026 due to relentless foreign selling despite robust domestic buying. The manager sees high-quality, rapidly-growing businesses at bargain prices trading at roughly 15x forward earnings, significantly below major indices despite faster earnings growth. India's world-leading GDP growth is underpinned by youthful demographics, accelerating urbanization, innovative digital infrastructure, and prudent macroeconomic governance. |
India Emerging Markets Growth Value Demographics |
AIThe manager believes AI's greatest long-term gains will flow to second-order beneficiaries—businesses that utilize the technology to optimize operations—rather than first-order hardware suppliers. AI's third-order effects are expected to boost India's overall economic growth by speeding agricultural productivity improvements, accelerating worker shifts to formal-sector firms, expanding household savings financialization, and increasing the number of creditworthy enterprises. |
AI Technology Productivity India Growth | |
HealthcareThe manager substantially added to positions in life sciences technology solutions provider Indegene and healthcare plan administrator Medi Assist Healthcare Services during Q2 2026. The team conducted ongoing due diligence on health insurance plan administrator Medi Assist Healthcare Services, indicating continued conviction in the healthcare sector within India. |
Healthcare Life Sciences Insurance India | |
EnergyBrent crude's recent drop back to its prewar price of around $72/barrel has eased pressure on India's energy import bill, helped stabilize foreign investor flows, and contributed to a partial reversal of the rupee's depreciation. The manager believes even a prolonged Middle East crisis would at worst exert a manageable drag on India's world-leading GDP growth, demonstrating a relatively sanguine view on energy risks. |
Oil Energy Commodities India Geopolitics | |
Industrial PolicyThe manager is hopeful that Indians' implicit endorsement of the Modi government's pro-economic development agenda will provide fresh momentum for transformative reforms to taxation, bankruptcy proceedings, labor laws, securities regulations, and state-owned enterprises. Recent free trade agreements with Australia, Britain, and the European Union are viewed positively. The manager particularly hopes for reinvigorated efforts at liberalizing land acquisition and clearing distortive agricultural subsidies and price controls. |
Reform Trade Policy India Government Agriculture | |
ValuationGymkhana's holdings trade at roughly 15 times forward earnings, significantly lower than every U.S. and Indian equity index mentioned, despite faster earnings growth. The manager views this as a very substantial discount to intrinsic value. Relentless foreign selling has driven Indian companies' share of global equity indices substantially below their share of underlying earnings, creating what the manager sees as bargain prices. |
Valuation Value Discount Earnings | |
| 2026 Q1 |
IndiaIndia's economy continues to expand at more than double the rate of global GDP, driven by favorable demographics, accelerating urbanization, rapid infrastructure upgradation, and vast cost-competitive labor supply. The median-aged citizen has seen US dollar-denominated per capita GDP grow sevenfold during their 29-year lifetime. |
India Demographics Infrastructure Urbanization GDP Growth |
DefenseRecent portfolio activity included increasing allocation to defense/aerospace companies through investments in defense electronics systems designer C2C Advanced Systems and other defense-related holdings. |
Defense Aerospace Electronics Systems | |
| 2025 Q4 |
AIAI infrastructure plays dominated 2025 returns, with 65% of Russell 2000's return coming from AI infrastructure. The manager views this as a concentrated market levered to a singular theme - essentially a bet on how much CAPEX five companies will spend building data centers. Questions whether the AI trade will persist given its concentration. |
Infrastructure Data Centers CAPEX |
Small CapsSmall caps continued to underperform large caps in 2025. The Russell 2000's returns were dominated by AI infrastructure plays and speculative unprofitable companies, creating extreme bifurcation between unprofitable stocks and quality stocks. Quality businesses now trade at historically cheap multiples. |
Russell 2000 Quality Valuation | |
QualityExtreme bifurcation in performance between unprofitable stocks and quality stocks has created historically cheap multiples for quality businesses. The manager sees this valuation disparity as creating opportunities for quality-focused investors. |
Valuation Multiples Disparity | |
ValueValuation disparities between winners and losers have reached historic extremes. Quality businesses today trade at historically cheap multiples, presenting opportunities for value-oriented investors in a market dominated by speculative plays. |
Valuation Disparity Multiples | |
| 2025 Q3 |
IndiaIndia is the world's fastest-growing major economy, on track to become the third-largest economy by 2028. The economy shows resilience against U.S. tariffs due to its domestic consumer-driven growth model, with goods exports to the U.S. representing only 2.2% of GDP. India's buoyant economic growth, monetary policy credibility, and fiscal discipline were rewarded with an S&P sovereign credit rating upgrade. |
Domestic consumption Economic growth Sovereign rating Consumer driven GDP growth |
Trade PolicyThe U.S. imposed escalating tariffs on India, reaching 50% on categories including apparel, chemicals, and jewelry, though pharmaceuticals and electronics remain exempt. These mounting trade barriers have accelerated India's pursuit of free trade deals with other countries including the UK, UAE, and potentially the EU. The tariff impact should be manageable given limited exposure. |
Tariffs Trade barriers Free trade agreements Export impact Trade diversification | |
DefenseDefense and aerospace businesses now account for roughly 6% of the portfolio capital. The fund has made growing investments in companies benefiting from the ongoing indigenization of India's defense and aerospace procurement, including advanced manufacturers and defense electronics suppliers. Examples include Airbus awarding Dynamatic Technologies a major aerospace export contract and Rolls-Royce sourcing components from Azad Engineering. |
Defense procurement Aerospace Indigenization Defense electronics Export contracts | |
Small CapsCompanies with market caps below $500 million account for 56% of invested capital, up roughly 10 percentage points from last year. The portfolio's average market capitalization is just under $1 billion, down from nearly $2 billion last fall. This shift reflects exiting larger-cap positions at substantial gains and adding to smaller, less widely-known companies viewed as more attractively mispriced. |
Market capitalization Small cap exposure Mispricing Position sizing Valuation opportunity | |
| 2025 Q2 |
RatesThe Federal Reserve cut rates by 0.25% in September, which typically makes equity investors optimistic as lower rates reduce borrowing costs and boost economic activity. However, Fed Chair Powell's subsequent comments about equity valuations being fairly highly valued created mixed signals for investors. |
Interest Rates Fed Policy Rate Cuts Monetary Policy |
AITech stocks have risen significantly on investor optimism about AI's potential to drive future earnings. The technology sector's elevated P/E ratio of over 30 reflects this AI-driven enthusiasm, contributing to overall market valuation concerns. |
Artificial Intelligence Technology Earnings Growth Valuations | |
| 2024 Q4 |
Trade PolicyThe White House's new trade policy began in earnest on April 2, causing initial market volatility with global markets reacting negatively overnight. A 90-day pause on specific tariffs announced April 9 led to the S&P 500's largest one-day gain in 17 years. Continued tariff discussions between the U.S. and China remained a focal point throughout the quarter. |
Tariffs China Trade Policy Volatility |
AIArtificial intelligence-related stocks provided underlying strength to the market rally in June. A well-received quarterly corporate report from a mega-cap AI chipmaker helped drive market sentiment. The recovery in AI-related stocks contributed to both the S&P 500 and Nasdaq hitting all-time highs during the quarter. |
Chipmaker Technology Growth Innovation |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| BELRISE.NS | Steve and/or Andrei held meetings in New York with auto and aerospace components supplier Belrise Industries. |
| CONCOR.NS | Steve and/or Andrei held meetings in New York with railway logistics company Container Corp. of India. |
| INDGN.NS | Our hardworking India-based analyst Nireeksha Makam has been busy conducting ongoing due diligence on some of our existing portfolio holdings, including life sciences software provider Indegene. We used the proceeds from these sales to add to our positions in comparatively cheaper stocks. Our buying activity during the past quarter included: Substantially adding to our relatively new investments in life sciences technology solutions provider Indegene. |
| MEDIASSIST.NS | Our hardworking India-based analyst Nireeksha Makam has been busy conducting ongoing due diligence on some of our existing portfolio holdings, including health insurance plan administrator Medi Assist Healthcare Services. Our buying activity during the past quarter included: Substantially adding to our relatively new investments in life sciences technology solutions provider Indegene, as well as in healthcare plan administrator Medi Assist Healthcare Services. |
| WABAG.NS | Our hardworking India-based analyst Nireeksha Makam has been busy conducting ongoing due diligence on some of our existing portfolio holdings, including desalination specialist VA Tech Wabag. |
| AVALON.NS | Our hardworking India-based analyst Nireeksha Makam has been busy conducting ongoing due diligence on some of our existing portfolio holdings, while also visiting with the managements of other interesting businesses including printed circuit board designer Avalon Technologies. |
| EMMVEE.NS | Our hardworking India-based analyst Nireeksha Makam has been busy conducting ongoing due diligence on some of our existing portfolio holdings, while also visiting with the managements of other interesting businesses including solar equipment supplier Emmvee Photovoltaic Power. |
| ATUL.NS | Our recent selling activity included: Trimming our positions in specialty chemicals producer Atul. |
| PANAMAPET.NS | Our recent selling activity included: Trimming our positions in specialty petroleum processor Panama Petrochem. |
| SPECTT.NS | Our recent selling activity included: Trimming our positions in staffing agency Spectrum Talent Management. |
| GALAPREC.NS | Our recent selling activity included: Trimming our positions in fastener/springs manufacturer Gala Precision Engineering. |
| SUPRIYA.NS | In addition, in recent weeks we pared slightly our position in Supriya Lifesciences (the pharmaceutical ingredient manufacturer in which we had bought additional shares as recently as April 2026) after that stock surged roughly +80% in the space of two months. |
| FINPIPE.NS | Our buying activity during the past quarter included: Purchasing additional shares in longer-held portfolio companies including PVC pipes/fittings manufacturer Finolex Industries. |
| ULTRAMARINE.NS | Our buying activity during the past quarter included: Purchasing additional shares in longer-held portfolio companies including pigments/surfactants producer Ultramarine and Pigments. |
| ELGIEQUIP.NS | In addition, in June 2026 we initiated a position in Elgi Equipments, an air compressor manufacturer in which we first invested back in 2013 before selling our shares at a profit in 2016. |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
| No Recent Buys Data | |||||
| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
|---|---|---|---|---|---|---|
| No Recent Sells Data | ||||||
| Industry | Prev Quarter % | Current Quarter % | Change |
|---|---|---|---|
| No industry data available | |||
