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CapGrow Capital employs a value driven fundamentally oriented multi-pronged approach to seek and invest in situations where identifiable catalysts exist which can unlock value and realize their full potential going forward on the completion of the event.
Potential sources of event opportunities include Mergers, Demergers, Spin offs, Buy backs, De-listings, Broken IPOs, Corporate & Management restructurings, or purely a Distressed security owing to a challenge in the industry or business environment, etc.
Our rigorous special situations event opportunity seeking process is characterised by 5 Factor deep dive analysis approach to research, analysis and investing.
Market cap & Sector agnostic Strategy with a built-in margin of safety & low correlation to the market indices
Achieves diversification of portfolios with distinct investment opportunities and including stocks with minimum overlap vis-a-vis other PMS and mutual fund portfolios
Profits arise from corporate events, and not merely underlying business operations per se
We maintain a low market beta focus, as we believe situation-specific risk is better than directional market risk
The Special Situations Strategy performance will therefore depend not so much on the market beta but more so on the progress of the event, legal and regulatory approvals
For its Special Situations Strategy, the guiding thesis for Portfolio build-up/stock selection focuses on employing a fundamental research-oriented 5 Factor Deep Dive Analysis approach to identify the most compelling valuation opportunities based on intrinsic value with an adequate margin of safety.
A large margin of safety or discount to intrinsic value improves the probability of capital preservation and appreciation.
