Risks we like

Disruption Risk
Disruptors can change the business environment. We like disruption risk (ie we would like to back the disruptors).
Quality of Management
If we can form a view on the quality of the management, we like taking management change risk.
Operational Risk
We like taking on operational risk (provided we get compensated for it).
Volatility
It is your friend – take advantage of it.
Analysing Company Financials
We analyze company financials, seeking undervalued opportunities driven by bankruptcy fears, while relying on strong balance sheets to weather challenges.

Risks we don’t like

It is something nearly impossible to get an edge on, and therefore,
we avoid such risks.

We generally do not like liquidity risk. Risk reward trade off needs to be a lot
more favourable to take on liquidity risk.

Paying up for companies that are building in high growth expectations can
lead to permanent loss of capital. This is a risk we do not like.

We do not like Corporate Governance risk.

REGULATORY RISK

It is something nearly impossible to get an edge on, and therefore, we avoid such risks.

LIQUIDITY RISK

We generally do not like liquidity risk. Risk reward trade off needs to be a lot more favourable to take on liquidity risk.

VALUATION RISK

Paying up for companies that are building in high growth expectations can lead to permanent loss of capital. This is a risk we do not like.

CORPORATE GOVERNANCE RISK

We do not like Corporate
Governance risk.

How we manage the above mentioned risks?

Being disciplined about our investment process.

Correlation between stocks in the portfolio will be kept low given the concentrated approach.

Liquidity of stocks in the portfolio will be kept in mind while following an all-cap approach.

Position sizing will be used to manage blow ups that are inevitably going to keep happening from time to time.

01
Being disciplined about our investment process.
02
Correlation between stocks in the portfolio will be kept low given the concentrated approach.
03
Liquidity of stocks in the portfolio will be kept in mind while following an all-cap approach.
04
Position sizing will be used to manage blow ups that are inevitably going to keep happening from time to time.