We have put together a brief note explaining optimism around manufacturing companies even though they have structurally lower ROE vs Consumer companies and hardly generate free cash flow at present.
Read MoreWe have put together a brief note explaining how we decide the composition of small, mid, and large caps in the portfolio.
Read MoreWe had an overweight position in Life Insurance (upto ~20% allocations in some accounts). We find this to be a very attractive industry and found valuations strongly in favor when it was hard to find value elsewhere. However, the industry has seen two regulatory actions in the last 24 months on tax saving products.
Read MoreWe have put together a brief note to explain our thought process underlying this investment
Read MoreThe purpose of our letters and occasional blogs is to provide transparency in how we are thinking with the goal of creating stronger alignment with partners who want to think and act long-term.
Two companies in our portfolio – STAR Health Insurance and Restaurants Brands Asia – have existing Private Equity (PE) shareholders looking to exit. Everstone is looking for a buyer for its stake in RBA. Similarly, there are a few PE investors in STAR who are looking to sell their stake.
PE funds have a finite life and need to return capital. The shadow of these exits often results in a weakness in stock prices till the exit is complete. For example, one of the PE investors in STAR sold a large stake via a block deal last Friday at a discount to the prevailing market price which resulted in a 8% drop in price.
Read MoreEnclosed note contains our perspectives on suitability of PMS structure versus other investment vehicles.
Read MoreWe have put together a brief note explaining implications of global repricing of risk.
Read MoreWe have put together a brief note explaining why we are not selling despite our concerns around over valuation in Small and Microcaps.
Read MoreEnclosed note discusses our approach to building the firm.
Read MoreWe have put together a brief note to explain our perspective on portfolio churn.
Read More