Founded by Mr. Ajay Sheth in the late 1980s, we have been in the Indian capital markets for 3 decades. Our focus was initially on providing research in the small and midcap space to FIIs, Mutual Funds and other Institutional Investors. In October 2007, we took a leap of faith. Our passion and belief fuelled our desire to start Investment management services under the SEBI (Portfolio Managers) Regulations, 1993. Today we manage money for over 700 family offices, corporates, HNI and NRI clients.
With a clear focus on identifying tomorrow’s wealth creators yesterday, we have consciously channeled all our efforts on listed equities. We have combined research experience of over 100 years. We believe in curating a reasonably concentrated portfolio of ‘high conviction’ stocks and nurturing the investment over 3 to 5 years.
Our mission stems from who we are. It is what defines us. It is what moulds us. It reminds us of our roots and is the very reason for our being. And it’s simple.
To ensure transparency and strive for excellence in our business through a disciplined process that is more enjoyable than the outcome.
Our investment decisions are based on a set of principles, which have been guiding us over all these years. These principles are stronger than any market upswing or downturn, are logical and rational, and are deeply rooted in our desire to provide stable, consistent and superior returns to our investors.
It’s a lot easier and a whole lot more productive to concentrate on what you know best, as compared to managing everything at the same time. We seek to identify simple businesses that are in a growth phase.
The Business-Management Matrix
There cannot be a tradeoff between business and management. Both aspects are equally important to decide if a business is worth investing in. A good business has to be backed by an able, honest and passionate management team. More often than not, such businesses are less affected in adverse times, and more importantly, always treat their smallest shareholder as their partner.
The Margin of Safety
Benjamin Graham, one of the best known value investors, has coined this particular term to describe companies whose shares are available at an “absolute” reasonable price and with a significant gap to their intrinsic value. We see this approach as more beneficial than a buy low-sell high approach.
The Longer Run
We believe in generating returns over time as compared to timing-driven returns. Trading is a zero sum game and vitiates the investment process. We prefer constructing a concentrated portfolio that delivers consistent returns.
There are a lot of companies out there. While investing in a very diverse set and large number of companies may seem an attractive prospect, managing them, is the complete opposite. To avoid this problem, we consciously limit the number of investments to enhance quality and remain focused. This enables us to effectively devote our time to tracking our investments as well as avoiding a high portfolio churn.Our quality-conscious approach to stock picking helps us stay the course in tough times and not be swayed by market sentiment.
We follow our investment philosophy rather than the markets. At the same time, short term market movements do throw up opportunities to buy into businesses at a discount to their intrinsic value. Long term wealth creation results from entering the stock at the right price (with a margin of safety), in remaining invested through market cycles and not letting the surrounding noise impact the thought process.
The Inverted Pyramid
The Inverted Pyramid represents our approach to investments. It starts with a broad examination of the investment universe, proceeding which we follow a narrowing down process until we find the right investment at the right price.