How We Think.
How We Invest.
How Are We Different?
Benchmark Driven
Scale and fee income drive decisions. Index replication becomes the path of least resistance.
Alpha-First Returns
Focused on generating alpha, protecting downside risk, and delivering absolute returns across cycles.
Passive Decision Cycles
Large teams and rigid processes slow reaction speed during changing market conditions.
Tactical & Agile
Capital allocation changes dynamically based on opportunity, risk and conviction.
Buy & Hope
Long-only positioning often depends on markets eventually recovering.
Conviction Based
Positions are built through disciplined filtration and deep business understanding.
Inflexible & Slow Cycles
Committee approvals, large teams, and bureaucratic processes slow reaction time to months.
Optimal AUM for Maximum Agility
Operating at an optimal AUM sweet spot allows us agility to swiftly take portfolio calls. With robust tracking and filtration criteria, decision-making cycles for our TAD strategy are short.
The Seven Chakras
Seven investment lenses — inspired by the ancient chakra system — that together form a complete view of any business. No position passes without all seven being evaluated.
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Return Metrics
We seek companies where return metrics are not only improving over the mid-term as investments mature, but also superior to those of industry peers. We exclude companies which have diversified into unrelated businesses or segments with lower return ratios than the current core segments. We favour companies with high asset turnover and low working capital requirements, except for specific cases in our TAD bucket.
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Leverage & Pledge
We maintain strict vigilance on excessive leverage and promoter share pledging. Our robust financial metrics filter is designed to ensure survival as the foremost priority. With resilience established, coupled with our investment philosophy, returns will subsequently materialize.
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Cash Flows
Revenue is vanity, profit is sanity, but cash is reality or the truth. We focus on companies that either demonstrate strong operating cash flows or have the potential to generate nonlinear cash flows following the completion of their current expansion or investment initiatives. We maintain vigilant oversight on companies where long-term cash flows don’t merge with the reported book profits across cycles.
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Corporate Governance
Management must display clear ‘skin in the game’, with aligned shareholder interests. We rigorously examine auditor qualifications and opinions, credit rating reports, scrutinize related party dealings, map the promoter’s family links, and review KMP compensation structures. Companies with any prior defaults or debt restructuring are excluded from our investment universe, with certain exceptions. In addition, we are alert to aggressive accounting practices and investigate any transactions lacking genuine business rationale.
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Earnings Momentum
Our focus lies in ‘growth’ and ‘mean reversion’, than ‘value’ investing. The Chakras ideation process guides us to target earnings momentum over the coming quarters and years. We evaluate past execution record across both trough and peak business cycles. We consciously avoid value traps like companies holding high cash reserves without corresponding growth, unutilized assets which has the potential to be monetized.