- Growth Orientation
- Straightforward Businesses
- Identifiable Strength
- Healthy B/S
- Prudent Capital Allocation
- Agile Management
Investment Approach
A robust investment approach rests on three pillars: a clear philosophy, a disciplined framework, and a repeatable process. Philosophy defines what kinds of businesses are attractive and how returns should be pursued. The framework translates that philosophy into concrete portfolio choices—what to own, what to avoid, and when to exit. The process then operationalises both, ensuring ideas are sourced, evaluated, sized and monitored consistently over time. Together, these elements aim to reduce noise, manage behavioural biases and keep the portfolio aligned with long‑term objectives rather than short‑term market movements.
Investment Philosophy
The philosophy focuses on owning straightforward, growth‑oriented businesses with identifiable strengths and healthy balance sheets, run by prudent capital allocators who can reinvest cash flows sensibly. It looks for growth at a reasonable price (GARP), not “growth at any price”, and emphasises risk‑adjusted returns with a clear margin of safety built into valuations. Risk is viewed through the lens of position sizing and capital preservation—knowing which types of businesses, structures and behaviours to avoid, and being conscious of one’s own biases to maintain discipline. The approach is process‑driven rather than outcome‑chasing: the emphasis is on following a robust investment framework, maintaining temperament through market cycles, worrying top‑down about risks while investing bottom‑up in individual companies, and avoiding large, speculative cash calls.
Like Companies...
Valuation…
- Growth at Reasonable Price (GARP)
- Risk-adjusted Return
- Margin of Safety
Risk…
- Manage risk through weights
- Know ‘Avoids’ to reduce mistakes
- Know own Biases to manage behaviour
Process…
- Focus on Investment
- Framework Maintain Temperament
- Wait for Outcome
Believe in…
- Worry TOP-DOWN; Invest Bottom-UP
- Don’t believe in taking large cash calls
Investment Framework
The framework defines how this philosophy shows up in the portfolio. The positioning is explicitly long‑term, with a tilt toward small and micro caps and a diversified portfolio of roughly 25–45 names to keep single‑stock and single‑theme risk in check. Core holdings are expected to exhibit stable business models, healthy and durable growth, strong return on equity, sound capital allocation and free cash flow generation, all purchased at reasonable valuations with low expectations embedded in the starting price. Special situations—such as counter‑cyclical or turnaround opportunities, asset plays, arbitrage or one‑off events—can be included selectively when risk–reward is compelling. Equally important is what the framework excludes: complex structures, highly regulated or opaque businesses, companies with governance issues, skewed outcome probabilities, large related‑party transactions or excessive leverage. Exit decisions are guided by predefined triggers such as the investment thesis not playing out, incremental upside no longer justifying the risk, or a clearly superior opportunity emerging.
Investment Positioning
- Long-term Orientation
- Small / Micro Cap tilt
- Diversified portfolio with 25–45 names
Core Investment Style
- Stable Business Model
- Healthy Growth with Longevity – GDP+
- Healthy ROE / Good Capital Allocation / Free Cash Flow
- Reasonable Valuation
- Comfort on Management Style / Integrity
Special Opportunities
- Counter Cyclical plays
- Turnaround plays
- No Growth but very cheap
- Asset Play / Replacement Cost
- Arbitrage Cases
- Event based
Want to Avoid
- Complex Structures
- Highly Regulated
- Governance Issues
- Skewed probability of outcomes
- Large Related party transactions
- Very high leverage
Exit Framework
- Thesis not playing out
- Incremental upside not commensurate with risk
- New opportunity looking better than existing name from risk-reward perspective
Investment Process
The process starts with bottom‑up stock selection grounded in financial parameters and qualitative filters. Screening focuses on avoiding certain sectors or companies upfront, understanding industry structure and opportunity, and conducting detailed historical analysis and due diligence. This includes reviewing accounting quality and governance practices, comparing management commentary with actual delivery, assessing management conduct, integrity and alignment of interests, and performing channel checks with customers, suppliers, auditors, ex‑employees, peers and industry experts. Valuation work then incorporates upside and downside scenarios, sensitivity analysis and explicit assumptions, ensuring position sizes reflect both conviction and risk. Once invested, holdings are monitored through a structured review of the investment thesis at regular intervals, tracking key variables on a dashboard and remaining alert to new information. Continuous learning—about businesses, industries and one’s own behavioural tendencies—underpins the process, with a conscious effort to avoid bias and maintain disciplined, evidence‑based decisions over time.
