Funds managed
| Fund name | Asset Class | License |
| India Capital Growth Fund | Small & Mid Cap Indian Equities (Closed Ended) – Long Only | SEBI AIF Cat 3 |
| Gateway to India Fund | Indian Equities (Open Ended) – Long Only | SEBI AIF Cat 3 |
| Ocean Dial Systematic Equity Fund | Equities – Long Only | SEBI AIF Cat 3 |
About the AMC
- Ocean Dial is a fully resourced and well capitalised asset management company, specialising in India.
- Founded: 2005
- Parent organization: Avendus Capital Private Limited, Investment Arm
Ocean Dial managed assets worth over $600 million, asset management company owned by financial services firm Avendus Capital, has launched an equity public markets focused alternative investment fund (AIF). The asset manager is looking to raise up to Rs1,500 crore for the new fund.
- Key staff –
- Gaurav Narain – Fund Adviser & Head of Equities India
- Shahil Shah – Assistant Fund Manager
- Saurabh Chugh, Ankush Kedia, Saurabh Rathore – Analyst
https://www.indiacapitalgrowth.com/about-the-company/why-india/
They have mentioned why choose India? Main reason being – Simply put, India has performed well because it has benefitted from, and continues to enjoy, strong investment fundamentals, setting it apart from most developed and developing economies. This has led to healthy GDP growth and robust corporate profitability.
Investment Philosophy (for firm)
Core to the investment strategy is an evaluation of the quality of the companies that make up the portfolio. The Manager draws on a framework of principles and potential investee companies must meet well-established criteria based on analytical models that seek to identify robust businesses, with high quality management. The investment time frame is over the medium to long term and the strategy is to invest in companies which can be expected to survive an economic cycle. Management must display a track record of rational capital allocation, a clear succession plan, and an alignment of interest between shareholders, owners and management. The following are a must –
- sound competitive position
- healthy balance sheet
- generate sufficient free cash to sustain growth expectations
- non-reliance on excessive debt funding or frequent equity shareholder dilution
Equally important to the strategy is the price of acquisition, minimising impact cost on the net asset value, and ensuring that there is a sufficient “margin of safety” in the purchase cost to reduce the risk of capital loss. Once acquired, we expect the power of compounding returns to expedite the realisation of absolute value. Seeking out “value” in potential investments is core to the process of reducing the risk of capital loss and maximising the opportunity to generate absolute returns.
The strategy does not engage in market timing, strives to minimise turnover and transaction costs, and disregards an approach of “index hugging”. Although the investment strategy has a value bias, the Manager recognises that growth can create its own value, and that high-quality businesses are seldom cheap. The strategy can involve making an investment ahead of any expected turn around in the operations of the business or forecasted share price appreciation.
Although the investment policy permits a broad investment approach – including bonds, convertibles and other types of securities – since 2013 the portfolio has only included companies listed on domestic Indian exchanges. The Company may use derivative instruments such as futures, options and warrants for the purposes of hedging currency and/or market risk but the Board does not intend on using derivatives for investment purposes. The Company may, from time to time use borrowings to provide short-term liquidity and, if the Board deem it prudent, for longer term purposes. The Directors would intend on restricting borrowings on a longer-term basis to a maximum amount equal to 25 percent of the net assets of the Group at the time of the drawdown. At present, the Company does not have any borrowings and does not intend on hedging its exposure to the Rupee.
Investment Process –
The Manager and the Investment Advisory Team generate investment ideas through a bottom up approach, including:
- A systematic screening process
- Meetings with senior management of potential investee companies
- Suppliers
- Customers
- Competitors
Media
India Capital Growth – A return to earnings, Ocean Dial Media Centre, 26th June 2018
http://martenandco.com/wp-content/uploads/2018/06/180626-IGC-annual-overview-MC.pdf
Analyst questions
- There is a long investment strategy available on your website, but can there be a crisp strategy which you follow for alpha generation?
- As mentioned you disregard the strategy of “Index Hugging”, so you never believed in passive investing, or have considered it for some funds?
Prepared by – Ridhima Jaisinghani
Date – 7th May 2020
You must be logged in to post a comment.