Interview: Manu Rishi Guptha, Founder and CEO of MRG Capital

Interview with Manu Rishi Guptha, Founder and CEO of MRG Capital

Mr. Manu Rishi Guptha is a highly experienced investment professional with a proven track record of success.

He has over 25 years of experience in the hospitality industry and fund management, and he is a passionate advocate for the importance of protecting and growing capital over the long term.

Manu Rishi Guptha’s investment philosophy is rooted in the belief that any portfolio manager claiming to beat the Buffet Hurdle of approx. 20% should have become more successful than Warren Buffet himself.

As a result, his focus is on protecting and growing capital over a period of time, rather than a relentless and insatiable need to outperform other funds or indices.

Can you tell us about the journey that led you to establish MRG Capital as a SEBI registered Portfolio Management Services company?

Manu Rishi Guptha: I have been managing funds for friends and family since the longest period of time. This journey started way back in 1993, when I raised some money from friends, family, college mates and teachers and was able to generate decent returns for them.

That was the start of this journey and as we evolved in our thoughts, investment philosophy and competence, we established MRG capital in 2008 and got our SEBI license in 2018.

What differentiates MRG Capital from other Portfolio Management Services companies in the market?

Manu Rishi Guptha: Our philosophy of wealth management has its underpinnings in our constant effort to minimize risk and protect capital.

We are happy to leave opportunities on the table but not get sucked into FOMO. Our entire wealth of immediate family and myself is invested in our funds and we have absolute skin in the game.

How do you approach portfolio management and what factors do you consider when selecting investment opportunities for your clients?

Manu Rishi Guptha: Value, Value and Value. Value investing is cliched and thousands of books have been written on the subject and yet the greed of getting rich overnight and impatience amongst investors and fund managers makes them take irrational decisions thereby putting portfolio growth and client wealth in jeopardy.

We believe, that we are able to overcome these biases by avoiding the temptation to over promise and by minimizing risk.

How do you ensure transparency and maintain trust with your clients when it comes to managing their portfolios?

Manu Rishi Guptha: Regular communication, constant updates, a transparent investment philosophy are the few catalysts that allow us to maintain trust with our clients – always

In your opinion, what are the key challenges or trends in the investment management industry that portfolio managers should be aware of?

Manu Rishi Guptha: Any portfolio manager as much as he/she is a good stock picker, must be a macro economist and a psychologist to become an effective fund manager.

The reason for the same is that psychology allows you to keep the biases in control of which everyone becomes a victim.

A macro economist especially in the current VUCA world where the established world orders that have existed since the last 5 decades are rapidly changing, allows the fund manager to be holistically informed during the decision-making process. This helps rather than having just a micro-opinion about investment decisions and underlying value

How does MRG Capital leverage technology and data-driven insights in its portfolio management strategies?

Manu Rishi Guptha: Public domain is rife with infinite information on every company and subject. Misinformation is a bigger problem.

We ensure that we sift through the plethora of information before making any investment decision. We have a carefully crafted performance parameters to select stocks and we use tech tools to scan the vast data and filter out stocks which meet these.

In an era where artificial intelligence is equipped to make portfolio decisions for a fund manager, we still believe that human instincts and experience have an edge and always can outperform a completely AI chosen portfolio

What kind of investment philosophy or principles guide your decision-making process at MRG Capital?

Manu Rishi Guptha: Great company at a fair price, sustainable business model, enough controls that monkey proof the business from bad management and a business better aligned to its customers’ needs are few core principles which drive our decision making process.

We are happy to hold a company which meet these principles for a minimum of 10 years and not worried about short term volatility and nervousness in markets.

As a SEBI registered company, what are some of the regulatory compliance requirements and standards that MRG Capital adheres to, ensuring the protection of your clients’ interests?

Manu Rishi Guptha: SEBI and its initiatives over the last few years have ensured that they have enough oversight on fund houses and fund managers and the dispensation of information, charging of fees is in line with their rules and regulations.

MRG Capital is extremely particular about these compliances above and complies beyond what is minimally required. Our communication with our clients is transparent and robust and that makes us an outlier in fiduciary propriety.

What is your success tips for young and aspiring entrepreneurs

Manu Rishi Guptha: Have audacious dreams and goals and protect them fiercely and work backwards while maintaining absolutely impeccable conduct and character.

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