Fund objective and philosophy
VVD Equity Fund is a Category III AIF designed to harness the wealth‑creation potential of Indian small‑ and micro‑cap companies. The fund is managed by a portfolio manager with extensive experience running public‑equity portfolios, having navigated and a range of performance outcomes relative to benchmarks. Drawing on these learnings, the investment approach for VVD Equity Fund is built around a disciplined philosophy and process that aims to deliver superior risk‑adjusted returns across market cycles over time
Opportunity set and business characteristics
The opportunity set is centred on established, profitable small‑cap businesses that are often perceived as fragile but, in reality, are niche leaders in their categories. Examples include the largest medicine manufacturer, leading diagnostic players, the largest opal and glassware manufacturer, or India’s largest furniture and specialty children’s hospital chains—companies that command strong positions in sub‑sectors larger corporations frequently overlook. These businesses typically enjoy durable competitive advantages, customer loyalty and pricing power, supported by founder or family ownership and structural growth tailwinds such as rising formalization and low starting penetration.
Portfolio construction and research edge
The portfolio is constructed with a clear long‑term orientation, giving underlying businesses the time they need to compound value rather than reacting to short‑term market noise. VVD Equity Fund follows a deliberate small‑ and micro‑cap tilt, concentrating on under‑researched niche leaders where intensive, bottom‑up research can uncover meaningful mispricing created by low institutional ownership and sparse analyst coverage. This research‑driven approach is designed to identify quality companies early, before the broader market fully recognises their potential.
Risk management and investor proposition
Risk is managed through a thoughtfully diversified portfolio of approximately 25–45 names so that no single company or theme dominates overall outcomes. Position sizing and diversification across sectors and business models aim to balance upside participation with downside protection, while still maintaining sufficient concentration for stock selection to be the primary driver of returns. By combining disciplined portfolio construction with a philosophy rooted in high‑quality small‑ and micro‑cap leaders, VVD Equity Fund seeks to provide investors with a high‑conviction, carefully managed gateway to the small‑cap universe within a Category III AIF structure.
