Investment Strategies

Our systematic approach to identifying exceptional investment opportunities and managing risk

Our Investment Philosophy Drives All Major Decisions

Four core principles guide every investment decision we make

•Listed market offers non-linear opportunities
•Every few years, market tends to swing from under valuation to over valuation and vice-versa
•Stock prices are slaves to earnings in the long-run but journey is never linear

•Good things come in all sizes
•We are completely market capitalization agnostic and the only filter we tend to use is liquidity to ensure smooth buying and selling
•Focus on companies that are under-researched and under-owned by institutional investors

•Not concerned by daily fluctuations in the market
•Try to profit both from long term and short-term cycles
•Focused fund management creates sustainable returns
•The Investment strategy aims to benefit from the long-term compounding effect in good businesses, run by great business managers

A rigorous funnel approach that narrows down thousands of companies to a concentrated portfolio of high-conviction investments

18-22 businesses

~45-55

Monitored for interesting business development, favourable valuations

~90

Promoter check, pedigree, factory visits, scuttlebutt, bottom-up research

~230

~950

~5500

All actively traded companies in the Indian markets

Our systematic approach to identifying, categorizing, and mitigating investment risks

Risk Universe	Nature of Risks	CREST Risk Mitigation Strategy
Poor corporate governance	Controllable	Avoid completely
Poor business quality	Controllable	Avoid completely
Expensive valuation	Controllable	Don't pay up
Execution risks	Manageable	Extensive due diligence on the promoters/management
Low liquidity	Manageable	Careful execution of trades
Volatility in stock prices	Not a risk!	Buy on dips, be opportunistic

Understanding mutual expectations ensures a successful long-term partnership

You agree with our investment process
You are looking for long-term compounding
You are concerned about your portfolio and not the market
You know that we will share notes on various investments and market from time to time, and you cannot ask us about market commentary