Investment Philosophy

Investment Objectives

We believe that wealth creation in equity market is driven by

  1. timing of upswing in business cycles and
  2. identifying companies with superior capital allocation skills.

What investment objectives do we pursue?

Our objective is to meaningfully and consistently outperform broad equity market benchmark i.e. BSE 500. We also aim to minimize downside risks and volatility of portfolio, while targeting superior returns.

How do we aim to achieve these objectives?

  • Identify sectors on cusp of profit up-cycle, driven by stronger demand growth relative to supply, industry consolidation, favorable regulatory changes, and change in consumer preferences.
  • Focus on companies with improving competitive advantage and long term potential, supported by proven track record.
  • Assessing valuation re-rating potential, thereby offering favourable outcomes from risk-reward perspective.
  • High conviction demonstrated by concentrated sector and stock specific portfolio, backed by in-depth research.

What is the investment process we follow?

Ideation and screening is driven by brainstorming within the team members, backed by research rigor and initial understanding of the underlying businesses. This is followed by analysis of publicly available information as well as interaction with the respective company managements. More often than not, we meet multiple companies in the same sector to form a view and zero in on a particular investment idea. At the roots, we are research analysts and like to get our hands dirty and make our own spreadsheet which then culminates in a concrete stock view.

Key Challanges

Our vocation requires a lot of experience, judgment and some luck, in that order. Real time investing is much more complicated, since other market participants are trying to do the same. Thus, meaningful returns are possible only when you weigh the above against (i) what is in the price, (ii) what is level of optimism/ pessimism embedded in the consensus view and lastly (iii) can we take a stance different from the consensus.