Investment Philosophy

Investment Mindset of the Fund

  • Growth + Value (Special Situations like Demergers & Delisting).
  • Future Ready Businesses.
  • Importance to position sizing.
  • After all, the big money is made in Quality businesses only.

Future Ready Businesses – Technology at The Fore.

  • Change is here. It is here at maximum velocity.
  • Way of doing things is changing across the board.
  • Profit pools are shifting at an alarming pace from Traditional Businesses to Technology led Business.
  • We must hence invest accordingly and pay respect to change and avoid old world ‘value traps’.
  • At Negen, we are closely trying to keep pace with innovation and try our best to invest early in ‘Future Ready Businesses’.
  • This will be key to an Investor’s returns going forward.

Portfolio Refreshing

  • The world is changing at a rate which we have never seen before.
  • Hence, it is imperative that the portfolio is always ‘relevant’ to its surroundings.
  • Our PMS scheme has a habit of refreshing the portfolio regularly so that we are never stuck in ‘value traps’ – stocks who’s time has long gone but investors feel it is cheap and good.
  • Example: Covid made a lot of industries irrelevant while also created big opportunities for many industries. One of the big reasons for our big gains in June-August 2020 period is because we were quick to “Refresh” the portfolio and made it relevant to today’s realities.

A System to Find Earnings via Data

  • We have developed a system which gives us an early indication on which sectors are witnessing cyclical or structural turns.
  • We also track projects that are announced across India in Real Time.
  • We have built networks and relationships across industry bodies so that we get data on changes that are occurring in real time or expected in the future in various sectors.

In a Nutshell

  • We are aware of the changing landscape.
  • We are relying on Real Time Data to keep up.
  • Our core philosophy is to buy Platform Businesses, Be where Growth is and also do Value Investing but only via Special Situations.
  • We are bringing a new vision to Investing to create sustainable wealth, grow the wealth and protect the wealth.
  • We will predominantly operate in the Midcap & the Smallcap space but occasionally hold Largecaps &/OR Cash when we take a bearish view on the market. We are flexible.