Long Term

Asset Management

The long only investment strategy is focused on delivering absolute returns for investors over the medium to long-term, with a strong emphasis on capital preservation. Stock selection is bottom-up, with a focus on buying quality business, which are predictable, scalable, have a competitive edge and most importantly, consistently generate free cash. We pay special attention on assessing management quality, reflected not just by corporate governance standards but also on capital allocation. As a part of the investment process, we spend considerable time analysing the ten-year historical data, prepared using our own standardized templates. Amongst certain financial parameters we lay emphasis on, are consistency in paying dividend and a threshold return on capital employed. We ultimately arrive at a fair value for the business and try to buy at below the fair value.

The systematic investment strategy aims to generate capital appreciation over a market cycle, with lower volatility and lesser drawdown than the market. The fund builds long equity portfolio using time-tested principles of value, momentum, low-volatility and mean-reversion. In times of market downtrend and macro distress, the strategy dynamically hedges its equity market exposure to protect it against a fall in the value of the assets held and occasionally to gain from market corrections.

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