2 Point 2 Capital

Name of the fundAsset class- categoryLicense
2Point2 capital trustEquity-long onlyAIF-III(IN/AIF3/19-20/0686)

About

2Point2 Capital is an investment firm that focuses on taking concentrated bets for the long term in high quality publicly listed Indian companies at reasonable valuations. As investment managers, their primary goal is to protect capital followed by their goal to generate returns that exceed the equity index return over the long term.

2Point2 was co-founded by Amit Mantri and Savi Jain. They have a combined investing experience of 24 years, primarily in the private equity and hedge fund industry.2Point2 Capital Advisors LLP is a SEBI registered Portfolio Management Services (PMS) provider (vide registration number INP000005190).

Key staff

Savi Jain has 13 years of investment experience across varied sectors and across Private Equity and Public Markets both. In his last role, he was an Associate Director at Tano Capital, a prominent Mumbai based private equity fund that manages more than USD 210 million worth of assets. He served as a Director on the Board of MSH Sarees that owns the popular ethnic wear brand ‘Jashn’. Prior to Tano, he was with Frontline Ventures, another private equity fund. He has evaluated more than 500 investments in diverse industries in his 6 years in private equity.Prior to his private equity career, he worked in ICICI Prudential Life Insurance with their actuarial/investment team that managed more than INR 300 billion in equity and debt assets. Savi received a Bachelor’s degree in Industrial Engineering from IIT Kharagpur. He is also a CFA®  charterholder. https://www.linkedin.com/in/savi-jain-cfa-85371010/

Amit Mantri has 11 years of investing experience across private equity and public markets. In his last role, he was a Vice-President at Hornbill Capital, a Mumbai based hedge fund. At Zephyr Peacock, Amit was part of the investment team that completed transactions in the logistics, IT infrastructure services, pharmaceuticals, clean-tech and financial distribution industry. He has served on the Board of 20 Cube Logistics as an Alternate Director and was part of the team that launched Sri Lanka’s first private equity fund. Amit has a Post-Graduate Diploma in Management from IIM Bangalore and a B.Tech in Computer Science and Engineering from IIT Kharagpur. He is also a CFA® charterholder. https://www.linkedin.com/in/amit-mantri-a97b0117/ 

Investment philosophy

Their investment philosophy is guided by the value investing principle of buying a security at a discount to its intrinsic value. When they invest in a stock, they buy the business and not the stock. they remain agnostic to the daily fluctuating stock price as long as they continue to believe in the business. They view market volatility as a friend that allows us to buy securities at a discount or sell at a premium to intrinsic value.Over the long term, only businesses with a strong competitive moat are able to create shareholder value. They seek to invest in businesses which have a strong competitive moat or are gradually widening their moat. The competitive moats that attract them are those driven by strong brands, distribution strength, inherent cost advantages, technology/IP and high switching costs.They prefer to invest in sectors that have long term growth opportunities. They avoid investing in highly regulated sectors, sectors linked significantly to commodity prices and sectors exposed to technological disruption. They also avoid sectors that over a long period only generate accounting profits and not cash flows.

They avoid businesses with weak corporate governance practices and only invest in businesses led by ethical management teams.Their valuation of businesses is absolute and not relative. They seek to maintain valuation discipline by investing only at a discount to intrinsic value resulting in a margin of safety.

Media

Amit Mantri comes on at 5:55

https://www.livemint.com/industry/retail/corporate-tax-cut-to-benefit-organized-retail-sector-with-pricing-power-most-11570561022338.html

Analyst questions

Prepared by- Sarath Chandra, Oct 2021

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