| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 11.1% | -11% | -11% |
Gymkhana Partners is down -11% year-to-date through April 2026, marking the seventh double-digit decline since beginning India investments in 2013. Despite current headwinds from US-India trade tensions and Middle East energy disruptions, the firm maintains conviction in its strategy of investing in undervalued Indian companies. The portfolio trades at a position-weighted P/E of 14x forward earnings, representing a substantial discount to broader indices despite faster earnings growth. Recent activity included net buying across defense, healthcare technology, and industrial holdings while divesting lower-conviction positions. The managers emphasize India's structural advantages including favorable demographics, accelerating urbanization, and infrastructure upgrades that drive GDP growth at more than double the global rate. Foreign investor outflows have been offset by strong domestic institutional buying. While energy price spikes pose near-term risks given India's oil import dependence, historical precedent suggests manageable impact on the economy's long-term trajectory. The firm remains fully invested, viewing current weakness as an opportunity to deploy capital profitably.
Gymkhana invests in undervalued Indian companies trading at significant discounts to intrinsic value, capitalizing on India's world-leading economic growth driven by favorable demographics, urbanization, and infrastructure development.
We are confident that the impact of this latest macro speed bump will be but a rounding error relative to the long-term growth trajectory of the high-quality companies in which Gymkhana is invested. We firmly believe that this latest downswing will ultimately prove, like those in years past, to have been an excellent opportunity to profitably deploy capital in an economy expanding at a rate more than double that of global GDP.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| 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 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 |
|---|---|
| PRUDENT.NS | revisiting the managements of existing holdings such as Prudent Corporate Advisory Services while also interacting with the managements of newer additions to our portfolio |
| BBL.NS | Buying additional shares in longer-held portfolio companies including electric transformer supplier Bharat Bijlee |
| CHOLAFIN.NS | Buying additional shares in longer-held portfolio companies including Murugappa Group holding company Cholamandalam Financial Holdings |
| DHANUKA.NS | Buying additional shares in longer-held portfolio companies including agrochemical distributor Dhanuka Agritech |
| SUPRIYA.NS | Buying additional shares in longer-held portfolio companies including export-focused active pharmaceutical ingredient manufacturer Supriya Lifescience |
| ULTRACEMCO.NS | Buying additional shares in longer-held portfolio companies including pigments/surfactants producer Ultramarine and Pigments |
| SANSERA.NS | Fully divesting our investments in precision components manufacturer Sansera Engineering |
| SUVEN.NS | Fully divesting our investments in neurodegenerative pharma R&D specialist Suven Life Sciences |
| ATUL.NS | Trimming our positions in specialty chemicals producer Atul |
| JAMNAAUTO.NS | Trimming our positions in automotive suspension springs manufacturer Jamna Auto |
| 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 |
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| No industry data available | |||
