Perspectives – Page 3

Enclosed note contains our perspectives on suitability of PMS structure versus other investment vehicles.

We have put together a brief note explaining implications of global repricing of risk.

We have put together a brief note explaining why we are not selling despite our concerns around over valuation in Small and Microcaps.

Enclosed note discusses our approach to building the firm.

We have put together a brief note to explain our perspective on portfolio churn.

Star Health has corrected significantly since our first purchase.

Enclosed is a note that explains why we have continued to buy Star at lower prices.

Silicon Valley Bank in the US has collapsed. SVB imploded as 3 risks collided

Side effects of excessive money printing came to the fore –> steep increase in the US yield curve as long term interest rates rose from 1.5% to >5% in about 15 months
Highly concentrated depositor base which withdrew large sums quickly
Huge Asset Liability mismatch –> short term deposits were parked in long term Assets (akin to what happened with our Real Estate NBFCs). Hence, SKB was forced to sell long term assets and book losses when faced with withdrawals at the wrong time, which eroded its Capital base and created momentum for a run on deposits (vicious cycle).

An article that explained what happened is enclosed.