Discretionary

  2. Discretionary
Discretionary

Under the Discretionary Portfolio Management Services, CapGrow Capital will have the sole and absolute discretion with regards to the selection of the type of securities traded on behalf of the Client and held in the portfolio, based on the executed agreement. The company has the discretion with regards to the choice and timing of investment decisions, reallocation/ modifications in the existing investments of the Client.The Securities invested/disinvested by the company for clients may differ from Client to Client in certain cases. The Investment decision (taken in good faith) by the Portfolio Manager and his investment team, who have the necessary experience, is geared towards the long term goal of wealth creation for the clients. The CapGrow team will ensure that all rules and regulations are adhered to.

Our Portfolio -

At CapGrow Capital, we make investments to match both short and long term goals by deploying differentiated strategies, all of them complying with our common and consistent investment philosophy. We thrive to create long-term sustained wealth for you, notwithstanding the short-term disruptions that may create doubts and fears in the minds of a typical investor. Our offerings are derived from our investment framework based on five key principles: Management Quality, Earnings Growth, Adequate Margin of Safety, Intrinsic Value, Size of the Opportunity. We believe that Volatility is our best friend in investing, as it provides good entry points at lower levels for stocks that we like and have been well researched by our team. We constantly keep evaluating our stock picks, and monitor the progress. Any deviations from our original thesis in a particular stock is evaluated thoroughly followed by appropriate action.

  • Capgrow Growth Investment Approach

    We call this a group of “Comforters”.The aim of this strategy is to generate returns by investing in companies that could offer sustainable long-term capital appreciation and are available at reasonable valuations. The idea is to invest in well-established businesses across sectors with a bias to invest in well managed companies with strong fundamentals and high growth prospects. The investment approach for the strategy will have the following core principles:

    • Economic Moat: In the long run, only businesses with a competitive moat are able to create shareholder value. Moat business typically demonstrate high capital efficiency, high return ratios and stability in cash flows. We prefer business with strong brand recollection and value, high cost efficiency, cutting-edge technology, strong disruptive business model and sticky products/services.
    • Management Quality: “Buying a stock is like marrying someone.” The Management quality is of paramount importance to us. We strongly feel that an above average business with excellent Management is better than a well established business with poor Management.
    • We love “Efficiency”: Efficiency in operations with transparency in disseminating information to its investors as well as efficiency in the working capital, form strong credentials of a great company in the making. Furthermore, this approach builds a higher capital efficiency for the business thereby, leading to higher return for the investors.
    • We believe in Economic cycles: We play risk differently than other investors. Going aggressive when nearing the trough is preferable and is a part of our core strategy. The risk at the trough is the least (unlike the market that perceives the risk to be higher) as a lot of negativity has already been priced in. Any positive impact incrementally, will lead to both triggers- the growth in earnings and the PE expansion, resulting in multiplier returns.
    • Margin of Safety: Our endeavor is to ensure that adequate layers of protection are built in to withstand the market volatility and any unexpected negative returns. We understand that “Future is uncertain” and therefore, we maximise our effort in building a safety net to ensure protection of capital and returns.

    Benchmark: Nifty 500

  • Capgrow Special Situation Investment Approach

    This is an event driven strategy that helps us achieve above market returns in the long run. The main objective of the strategy is to utilize special situations that stem from corporate actions including buy-backs, a delisting, spin offs and demergers, delisting or Broken IPOs and distressed situations.

    This is a strategy that will be market neutral to a large extent in the long run and will depend upon the events likely to happen in the future. These events unwind value and create shareholder value and are also a function of the “behavioral finance” of the business owners. We are very passionate about this aspect - the behavioral finance as they help us comprehend the reasoning behind various actions of the owners. The distressed situation is another interesting piece that happens every 6-8 years in cyclical industries and offers considerable upside.

    Benchmark: Nifty 500

Selling your winners and holding your losers is like cutting the flowers and watering the weeds.

- Peter Lynch