Vasisth Capital

Funds managed

Fund name	Asset Class	License
Vasisth Relative Value Fund	Hedge fund	SEBI AIF Cat 3

About the AMC

• Vasisth serves as investment manager to Vasisth Relative Value Fund – a SEBI registered Category 3 Alternative Investment Fund. VRV is an open ended scheme offered by Avyay Trust.
• Ramesh Callore, Managing Director and Portfolio Manager. Since 2009

Investment Philosophy (for firm)

Vasisth Capital uses relative value strategy to generate alpha with well-defined risk management practices by trading in equity derivatives. It is open ended value Based fund.

Investment Strategy

Vasisth’s strategy consists of capturing temporal variations in asset prices – relative valuation gaps. Adopting fundamental factor models to accurately spot the valuation gaps and then making use of IT enabled algorithms for execution, together, makes it a highly repeatable and scalable investment strategy

Fundamental factor model

The model takes into account all factors that either positively or negatively impact the growth, efficiency and sustainability of one company over other. A well-structured framework encapsulates key modelling activities. Selection of securities/sectors/factors, grading analysis, factor sensitivity analysis, construction of core price series, factor scoring etc.

Model accuracy

Relative factor models at Vasisth are not just back tested. Even in predictive period, statistics for the model accuracy have shown consistent results even in widely varying industry and company specific cycles.

Streamlined portfolio management

Real time IT-enabled portfolio management system encapsulating opportunity assessment, portfolio construction, monitoring, balancing and optimization.

Investment Approach 

Fundamental research

Deep insights in multiple sectors including Banking, IT, FMCG etc. enables thorough screening, acceptance and grading of securities, pairs and sectors

Relative value modelling

Developed proprietary sector specific relative valuation models for PSU banks, Private banks, IT, FMCG, Cement, Oil sectors that are highly repeatable across business cycles and extremities.

Exploit randomness

Markets are an interesting mechanism reflecting inherent enterprise fundamentals, demand and supply, opinions, over/under reaction to macro and company specific events, biases, fear, greed and more. Volatility and random movement of securities are integral to such markets. We aim to exploit such randomness by separating the ‘core’ movement from the ‘noise’.

Media

No media Interviews 

Analyst questions

How can you define the difference between fundamental research and relative modelling?

While stock picking what factors do you consider for constructing a portfolio?

Peer review – Shivani Kadam

Date – 11th May 2020.