Investment Process

A structured, funnel-based process converts a broad universe into a focused portfolio of high-conviction investments.

• Initial screening across a universe of 5,000+ companies

• Multi-stage filtering across financial strength, sector alignment, and operational quality

• In-depth fundamental analysis on a refined set of opportunities

• Final portfolio of 15–25 high-conviction positions across 6–8 sectors

The proprietary process is designed to identify scalable businesses with strong growth visibility, while maintaining discipline in portfolio construction.

Investment Philosophy

A value-investing framework applied to high-growth businesses, anchored in four principles.

• Deep Fundamental Analysis: Conviction is grounded in business quality, competitive positioning, unit economics, and management calibre, not narrative or momentum. Each position is supported by weeks of forensic analysis.

• Price Discipline: Investments are made only where growth exceeds what the market is pricing in, or where dislocation creates attractive entry points. Valuations are anchored through PEG, EV/EBITDA, and returns on incremental capital.

• Downside Protection: Strong balance sheets, cash generation, and clean governance are non-negotiable. Downside scenarios are modelled before upside, with deliberate focus on what could break the investment thesis.

• Multi-Year Horizon: Stock prices fluctuate; business quality compounds. Volatility is treated as an opportunity to accumulate when fundamentals remain intact — not as a reason to exit..

Risk Framework

Risk management is embedded throughout the investment lifecycle, with capital preservation across cycles as the central organising principle. The framework operates across seven layers.

• Portfolio Construction: A concentrated portfolio of approximately 20+ high-conviction positions, diversified across six to eight sectors. Position sizing is disciplined within a 3–5% range per holding under normal conditions, balancing conviction with prudence. Concentration is deliberate, but never unbounded.

• Single-Name and Sector Concentration: Single-name exposure is capped through hard sizing limits. Sector concentration is monitored across the portfolio, with no single sector representing a disproportionate share of net asset value. Where positions appreciate beyond intended weight, trimming is considered against forward valuation, liquidity profile, and the marginal return on incremental capital.

• Liquidity Discipline: The portfolio is constructed to preserve operational liquidity across normal and stressed conditions. Liquidity targets are reviewed at the position level, with the objective that approximately fifty per cent of the portfolio can be liquidated within six trading days under typical market conditions. Tactical cash allocation, generally in the range of five to fifteen per cent during low-conviction or high-valuation phases is held as both opportunity reserve and defensive buffer.

• Governance and Forensic Diligence: Investments are limited to businesses demonstrating consistent profitability, cash flow visibility, capital efficiency, and high standards of corporate governance. Promoter alignment, related-party transaction patterns, pledged-promoter-holding levels, and accounting quality are reviewed at entry. Larger positions are subject to forensic financial analysis as part of pre-investment diligence.

• Valuation & Exit Discipline: Capital deployment is anchored in a structured valuation framework using PEG, EV/EBITDA, and returns on incremental capital, supplemented by sector-specific multiples where appropriate. Exit decisions follow the same framework: positions are reviewed when valuation extends materially beyond fundamentals, when the underlying thesis is broken, or when better-asymmetry opportunities are identified elsewhere in the universe.

• Currency and Cross-Border Risk: Subscriptions and redemptions are denominated in USD, while the underlying portfolio holds Indian assets. Return expectations incorporate a structural assumption regarding INR depreciation. Currency exposure is actively managed at the portfolio level, with hedging considered through derivative instruments where the cost-benefit profile and the directional view warrant it.

• Monitoring and Escalation: The portfolio is subject to continuous monitoring. Quarterly portfolio reviews assess thesis integrity, valuation, governance signals, and liquidity at the position and aggregate levels. Defined escalation triggers including governance events, material accounting irregularities, regulatory developments, or significant market dislocation along with prompt expedited review by the Investment Committee, with reporting to the Board of Directors of the Fund.