Direct Equities Advisory | Offerings

Direct Equities Advisory

We design an actively managed portfolio for you of 15-30 good quality businesses listed on the Indian stock market.

We have a value-oriented long term investment philosophy, which involves buying fractional stakes in well run businesses listed on the Indian stock market at a discount to their fair or intrinsic value (i.e. for less than what they are actually worth) and holding these stakes for the long term (i.e. a minimum of 3 years unless the business shows signs of material deterioration in the intervening holding period).

Our investment process will be geared towards investing in companies with the following characteristics:

• A business that we can understand and monitor without being overly reliant on the management team running the business;
• A sustainable competitive advantage - companies that generate sustainable return on invested capital because of strong competitive position in their operating markets;
• Trustworthy management with a track record - companies with trustworthy, sincere and competent management teams with a good history of successfully deploying capital;
• Good financial health - companies with manageable financial leverage / debt; and
• Reasonable valuations - where our purchase price leaves sufficient margin of safety if our investment thesis is proven to be wrong.

Our actively managed portfolio will take into account your risk profile and investment objectives and to the extent feasible will also have a feature of “skin in the game” with co-investment in the same set of companies.

We will not engage in buying companies that are the current fancies of the market (they typically tend to trade at fancy prices and eventually result in their investors booking fancy losses), daily trading, trading in the futures / options / derivatives markets and short selling.