Investment Approach
We have absolute return orientation. We
invest in companies with high quality business models, demonstrated management
execution capabilities and history of superior corporate governance. We look
for favorable price dislocations in such companies
and hold them for the long term. We invest in companies across themes, sectors,
and market cap brackets. Our approach hinges on four fundamental tenets: deep
& original bottom up research, persistent
learning, and risk minimization while being backed by aligned capital
·
Deep and Original
research: We rely on internal
research to generate original insights by developing an intense and detailed
bottom-up understanding of industries followed by identifying micro differences
between the players in an industry. We invest inordinate time discovering
evolving consumer behavior, industry structure,
competitive differentiation, etc., which may lead to sustainable long-term
trends in an industry, which may favor one player
over another. We also carefully analyze the history
of management execution and corporate governance of the target company to
understand its ability to capture the value and its translation into the stock
price.
·
Persistent Learning: Our learning process looks at a trend from an evolving ecosystem
point of view and continuously evaluates the ability of the target company to
capture the value incrementally. We seek learnings from other geographies,
sectors, other investments, partners, fellow investors, etc. to improve our
understanding on an ongoing basis.
·
Risk Minimization: Risk minimization is the most important tenet of our philosophy.
It builds on top of our research and learning tenets while remaining diligent
about their limitations on risk minimization. Capital protection is the key
objective of our risk minimization framework. We prefer to wait for the right
price. We buy into an opportunity only when the price has an adequate margin of
safety.
·
Aligned Capital: We carefully select our investors who provide us with patient high
quality capital that can be put to use for long term.
Our investor partners include highly respected institutions, iconic
entrepreneurs, exceptional professional achievers, marquee family offices,
successful CXOs & Promoters of large corporates and academicians.
Our research
and position-building activities are typically temporally disjointed.