Green Lantern Capital

Funds managed

FundCategory License
Growth fundMid & Small Cap PMS
Alpha fundMulti-CapPMS

About

Green Lantern Capital LLP is a SEBI-registered portfolio management company, based in Mumbai, India , incorporated on 03 December 2016. They practice research oriented, disciplined approach to investing and invest in multi-asset portfolios, benchmark and market capitalization agnostic equity and provide investment advisory services, outcome-oriented investment solutions and fund management services for their clients. Green lantern capital works with individual investors, foreign investors, multiple institutions, family-run businesses to financial product advisors.

Key staff

NILESH DOSHI – CEO & Managing Partner, Principal Officer at the firm – has 30+ years of work experience in firms like Pidilite, Praxair, Floatglass India, before moving on to pursue his passion in investing and honing his skills by joining as Head – Equity Research & Institutional Sales at Techno Shares & Stocks, Way 2 Wealth Brokers and later at Edelweiss Financial. B. Tech. Chemical Engineering, IIT Bombay

ANURAG JAIN – Designated Partner – His last assignment was as Chief Investment Officer, Canara HSBC OBC Life Insurance, managing a corpus of USD2Bn. His investment experience includes SBI Mutual Fund and Kotak Mutual Fund as equity research analyst and fund manager, besides working on the sell side with SSKI Securities. B.E. (Hons), PGDM, IIM Kolkata

ABHISHEK BHARDWAJ – Designated Partner – Accountant by training, 19+ years experience with institutions like Reliance Mutual Fund, Monsoon Capital (FII), Heritage Capital (FII), Star Union Dai-Ichi Life and Care Ratings.

NITIN PANDEY- Designated Partner (PGDBA) – Nitin has over 18+ years of equity market experience, working with institutions like Reliance Capital AMC and Edelweiss Financial in research & Portfolio management. His last assignment has been as an Investment Manager at Miras Investments (USD2Bn global family office based out of Oman).

Investment philosophy

Approach-

Green Lantern’s  investment approach is based on the BMV model of investing, 1) Business, 2) Management and 3) Valuation, in that particular order.

1)Business: Identifying and investing in the right business is very important, businesses with large market opportunities, strong competitive characteristics and high ROEs. Good businesses over a period of time tend to deliver superior returns.

2)Management: Identifying exceptional managers or management teams  running these businesses, having industry leader mindset and hunger for growth driven by rational capital allocation.

3)Valuation: Last but clearly not the least is paying the right value for these businesses. Staying ahead of others helps a lot in getting these opportunities at a high margin of safety. Margin of safety helps in downside protection and capital preservation.

They believe investment is as much about Psychology as about the economics of it.  Their  research process helps them stay ahead of others and focus on asymmetric risk rewards and earning inflection points with high margin of safety.

Strengths as mentioned by Green lantern capital –

  1. 80+ years of cumulative market experience, along with diverse backgrounds.
  2. Deep understanding of global macro and emerging trends.
  3. In depth knowledge of Indian businesses, promoters and companies.
  4. Right temperament to ride the winners and realising full potential of our investments.
  5. Being greedy when others are fearful and being fearful when others are greedy. We are not compulsive investors

Philosophy –

It is their strong belief that “Time in the Market” is more important than “Timing the Market”.  It is near impossible to consistently time the market, so rather than getting swayed by the short term volatility, they focus themselves on identifying large macro-economic trends and finding businesses capable of capitalizing on them to create long term wealth. Rather than focusing on meagre outcomes, this helps to catch asymmetric rewards, earning inflection points, faster growth for longer and all this with high margins of safety.

Additionally, this is achieved with a risk conscious approach. Risk for them emanates from paying a high price for the businesses, volatility in earnings and cash flows or highly levered Balance Sheet or over ownership of their stock.

Quality companies in growth markets:

Strong franchises + good/ethical managements

Large market opportunities, strong competitive characteristics and high ROE

Industry leaders

Hunger for growth

Risk conscious approach:

Valuation Risk

Earnings Risk

Balance Sheet Risk

Over-ownership risk

Investment principles:

Absolute return mindset:

Asymmetric risk return approach

Undiscovered/underperformed

Disciplined approach to selling

Flexible Approach:

Combine top down and bottom up approach

Capitalising on occasional tactical opportunities

Ability to use cash as a hedge

Model portfolios

  1. Growth fund

The fund strategy endeavors to generate superior risk adjusted returns, in varying market conditions, by investing in Mid & Small Cap companies.

Ideal long-term investment (3-5 years Horizon) option for investors where we build a portfolio of companies that are Industry leaders, have potential to generate healthy ROE, and are trading at high margin of safety.

No. of stocks – 15 to 20

Benchmark- bse small cap index

Portfolio construction – Large Cap ( 0 – 30%) , Mid & Small Cap (70 -100%)

  1. Alpha fund

The fund strategy endeavours to generate superior risk-adjusted returns, in varying market conditions, by investing in large Mid-Caps within a broad Multi-Cap allocation strategy.

Ideal long-term investment option for investors to build a portfolio of market leaders with strong balance sheets, superior earnings growth and steady free cash flow generation.

No. of stocks – 20 to 25

Benchmark- BSE 500

Portfolio construction –  Large Cap (0-60%), Mid Cap ( 20-60%) , Small Cap (0-40%)

Media

No media

Analyst questions

Authors

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