- To provide investors with long term capital appreciation with a sustainable outperformance over a predetermined benchmark.
- Offer investors, under one umbrella, an opportunity to invest across asset classes, both listed and private and achieve a clear advantage and efficiency of returns by optimal balance of portfolio allocation across these classes.
We will make direct investments in the listed securities in the Indian equities, derivatives and debt markets. The fund may also invest in privately held unlisted companies and over the counter (OTC) derivatives and options.
The fund will also invest in early-stage and seed-stage opportunities in the emerging sectors to seek attractive returns for the investors from the tremendous growth in successful entrepreneurial activities and innovations in India. These investments will be made in early stage businesses with high potential for growth and profitability with successful management teams, where such companies offer attractive exit opportunities as they become successful. The investment focus will be on emerging sectors which has solutions for large enterprises for increased productivity, potential to reach to serve large populations and/or with disruptive innovations with deployable scalability for mass market consumption.
Typical HNIs neither have the capacity nor the access to such opportunities today and the fund aims to fill that gap with institutional approach of investing in this asset class and reap the optimal benefit for the individual investor of the fund, especially with volume and quanta available coupled with expertise in business prospect valuation. The fund may use equity, equity-linked and quasi equity and other instruments such as venture debt financing, warrants for equity conversion and other convertible instruments in these private investments.
Our investment approach is simple: Regardless of our view of the economy, business prospects and the markets in general, we will devise a defensive strategy that fits our view of the opportunity at the time and execute that plan aggressively based on predetermined profit and maximum loss targets. We will manage and monitor our profit targets regularly for every single investment and calibrate them based on the updated view. This approach is the highest level guiding principle for all our investments in any asset class.
Our Managers do not believe in being married to pre-conceived notions of a specific style of investing e.g. value investing or growth investing. Neither are we stuck on using just the fundamental or technical tools. Rather we will use all the information available for an investment candidate which helps us convince about the future returns of our allocation of capital. Having said that, we give qualitative business characteristics of a business significant importance in our selection process, in addition to quantitative factors and don’t use any one magical formula for all our investing.
Portfolio Mix across asset classes
We use a myriad of theoretical models however we are keenly aware of the folly of rigidly following any model and use them as a starting point and know that participation and listening to the macro conditions and the market and adapting to them are the keys to long term successful volume investing.
We do not expect to have rigid and pre-determined percentage allocations to any specific asset class at the outset and will make our allocations based on the prevailing market conditions which will vary significantly over the life cycle of the fund’s term.