Funds managed
| Fund name | Asset Class | License |
| Intrinsic Deep Alpha Fund | Equities Long Only – Micro Cap Focus | SEBI AIF Cat 3 IN/AIF3/19-20/0706 |
- Small sized fund:
(SME & Microcap focus) This allows us the luxury to target highly promising companies with a market capitalisation as low as INR 100 crores.
- Ahead in the value curve:
Early investment in companies which are in their infancy thus having the potential to deliver exceptional returns when they scale up.
- Hidden Gems:
Companies which are very unlikely to be in the radar of competition due to their small size.
- High Growth Industries:
Stock picks are likely to be more concentrated in high growth sectors like speciality chemicals, niche engineering, industrial brands, auto ancillaries, education, software products, healthcare and other promising such sectors.
About
- Chennai-based Equity Research and Asset Management firm.
- Trustline is an investment specialist with unwavering focus on Portfolio Management Services and Alternative Investment Fund. This focus is born out of our strong belief that specialization often produces very good business economics and builds durable competitive edge in the market
- Trustline was incorporated in March 2004.
- Trustline measures their business objectives , not by size of the assets under management or its growth, but by the respectability they build amongst their Customers , Employees and Shareholders of TrustLine.
- Trustline’s aspiration is not to become the large Asset Management company, but to become one of the most admired and respected Asset Management company in the country. This , we would like to achieve by focusing on client’s long-term wealth creation by pursuing excellence in financial research , client servicing and in key processes in our business.
Key staff
Arunagiri N, Founder CEO and CIO – Arun runs the PMS operations at TrustLine as its Chief Investment Officer and as Founder CEO. Under his able fund management, the firm manages over Rs. 375+ crores of AUM for over 500+ highly satisfied clients. TrustLine is among the top discretionary portfolio managers in India with industry leading performance i.e. delivering over 19.10% (as on 31st Dec 2019) annualized returns over the last 13 years (since the inception of the fund).As an enthusiastic and disciplined practitioner of Value Investing over long time, Arun has come to believe that key to success in Value Investing lies not so much in financial skills, but in emotional and temperamental skills. He believes very strongly that Value Investing is a great wealth-building opportunity for anyone who could think and act long-term without getting swayed by the short-term swings of the market.
Vijaykumar B, Vice President- AIF Operations and SME domain – Vijayakumar brings with him an enviable track record in management assessment in the SME space by virtue of his long stint in leading financial services firms including Cholamandalam Investment & Finance Co Ltd where he was heading the SME vertical till recently. He will be responsible for management assessment for the companies that are under research in the SME space, besides being responsible for complete AIF operations that includes Regulatory compliance, Risk management, Client services, reporting and the entire gamut of AIF backend. He has a Post Graduate Diploma in Management (MBA) from IIM, Bangalore with rich industry experience of 26 years.
Investment Philosophy (for firm)
Arrived from a perfect blend of highly successful and proven models of Financial Valuation by Benjamin Graham and Market Research by Philip Fisher. We look at the economics of a business, and not on the price-action or market-action. We believe in protecting the principal first, and then growing it at an above-average long-term rate of return while adhering to the Margin of Safety (MoS).
Our approach to stock selection is bottom-up, stock-specific from under-researched / under discovered universes with a huge emphasis on Intrinsic Value (Free Cash Flow), Return on Equity (RoE) and MoS.
In simple words, we look at profitable businesses with superior long-term economic characteristics (durable competitive advantage), run by astute and honest managements, and are available at attractive valuations with reasonable Margin of safety.
Media
Is the small cap story over?, 21st June 2019
CEO of Trustline talks about the behavior of small caps over economic cycles and market correction.
TrustLine announces successful closing of Intrinsic Deep Alpha AIF – Category III offering, 23rd Jan 2020
The fund(Intrinsic Deep Alpha) has received commitments of Rs 800 million-plus from existing and new investors against the target of Rs 750 million.
The fund states its objective as to create a ‘Rich’ portfolio from “Small” gems.
Tips on Value Investing,Podcast On The Economic Times, 10th March 2018
Mr. Arunagiri N. Founder, CEO and CIO of Trustline talks about his philosophy about value investing. He says real challenge in value investing comes in practicing it. It is not the technical competence or financial skills but the temperamental skills like rationality,objectivity,diligence,know to act,etc that really forms the fabric of a successful organisation.
Analyst questions
- Can you talk about the challenges you face in value investing?
- Can you tell us something about the trends or changes that have taken place in the micro cap segment of India?
Prepared by – Rashika Bhatia, May 2020
Peer reviewed by – Shantanu Dasgupta, Sep 2021
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