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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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NS Partners 2024 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (NS Partners)

Primary Source Intelligence • Q3 2024 Letter Analysis

NS Partners Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, NS Partners. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

YTD-6%

Digest Analysis

Quick Take

"The fund's concentrated portfolio benefits from India's domestic growth resilience, defense indigenization trends, and structural reforms."

Executive Summary

Gymkhana Partners delivered -6% year-to-date returns through Q3 2025, primarily reflecting rupee depreciation against the dollar. Since inception in mid-2013, the fund has generated 13.2% compound annual returns net of fees, demonstrating the success of their India-focused strategy. The managers maintain conviction in India's resilience despite escalating U.S. tariffs, noting that goods exports to the U.S. represent only 2.2% of Indian GDP. India's pursuit of alternative trade partnerships with the UK, UAE, and potentially the EU by year-end should offset any U.S. trade disruption. The portfolio remains concentrated in small-cap companies, with 56% of capital in sub-$500 million market cap names and 79% allocated to their top 30 positions. Defense and aerospace exposure has increased to 6% of capital, benefiting from indigenization trends. Domestic investor flows continue displacing foreign capital, providing market stability. The managers expect Indian companies to prosper regardless of U.S.-India relations, supported by robust domestic consumption, favorable demographics, and structural economic reforms including recent tax changes and monetary easing.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

78%

CautiousHigh

High Conviction (78%)

High conviction evidenced by concentrated portfolio with 79% in top 30 positions, specific position sizing details, and willingness to increase exposure to defense theme to 6% of capital. The managers name specific holdings, describe transaction activity, and maintain focused geographic and thematic exposure despite headwinds.

Growth Outlook

75%

BearishBullish

Bullish (75%)

The managers express strong optimism about India's economic prospects, describing it as the world's fastest-growing major economy with robust domestic consumption and structural tailwinds. They view current challenges as manageable and see India's diversification away from U.S. trade as ultimately beneficial.

Risk Appetite

60%

DefensiveAggressive

Balanced (60%)

The fund maintains concentrated exposure with 79% in top 30 positions and continues adding to defense/aerospace themes. However, they have been selectively reducing lower-conviction positions and realizing gains, suggesting measured rather than maximum risk appetite.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

Mixed deployment activity with some profit-taking from Maharashtra Scooters, Dharmaj Crop Guard, and Ultramarine & Pigments, while simultaneously adding to Supriya Lifesciences, Azad Engineering, and D-Link India plus four new defense positions. This represents rotation rather than net deployment or de-risking.

Forward Guidance

65%

CautiousExpansionary

Expansionary (65%)

The managers express confidence about deploying capital in defense/aerospace themes and expect to continue finding opportunities in India's growing economy. They plan continued research trips and maintain an active investment stance despite current headwinds.

Language Signal

70%

BearishBullish

Bullish (70%)

Language is predominantly positive with terms like 'buoyant economy,' 'superior returns,' 'attractive mispricing,' and 'prosper.' Risk language is present but balanced with opportunity framing, and challenges are characterized as manageable rather than threatening.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

Moderate risk acknowledgment around U.S.-India trade tensions and geopolitical concerns, but risks are characterized as manageable given India's limited export exposure. The managers discuss foreign investor selling pressure but frame it as historically cyclical rather than systemic.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

The managers see abundant opportunities in India's growing economy, particularly in defense/aerospace indigenization and small-cap mispricing. They initiated four new positions in defense and continue finding attractive investments despite market headwinds, suggesting a rich opportunity set.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

Multi-year investment horizon evidenced by 40% of capital in companies held for at least five years and focus on structural themes like defense indigenization and India's economic transformation. The managers emphasize long-term compounding and structural growth drivers rather than near-term catalysts.