WE ARE BAY. THE INDIA INVESTMENT EXPERTS

ALTERNATE INVESTMENT FUND

Bay Capital India Leaders Fund

The objective and purpose of the fund is to carry on the activity of an open-ended Category III AIF, and for this purpose, to make, manage, and dispose of investments with a view to achieve long term capital appreciation and to deliver superior risk adjusted returns though a bottom-up stock selection methodology.

The Fund will seek to achieve long term capital appreciation by primarily investing in a diversified portfolio of equity and equity related securities, listed on the recognized stock exchanges. The fund may also selectively buy securities of late-stage pre-IPO companies, subject to applicable laws.

The portfolio manager’s core strategy is to identify businesses with deep, entrenched ‘moats’ around them which may be in the form of brands, distribution, technology or market share through which it is able to maintain its competitive edge in an industry.

These ‘moats’ usually allow businesses to generate high return on capital and consistent free cash flows which drives share price performance over the longer term.

The fund has the ability to invest across large, mid and small cap stocks.

The objective is to be absolute return oriented. However, as a metric of comparison, our benchmark is the NIFTY 50. The prime focus is to provide long term sustainable returns to our investors based on a maximum stock universe of 30 securities in order to diversify risk.

The objective of this portfolio is to generate capital appreciation over the medium to long term by investing in equity and equity related instruments in the Indian public markets. The portfolio manager would be adopting a flexible investment strategy with the ability to invest across large, mid and small cap stocks.

On a selective basis, the portfolio manager would also have the option to invest up to a maximum of 10% of the committed portfolio corpus in IPO, Pre-IPO and private equity related transactions. The investment strategy would be largely bottom-up, as the investment thought process within the firm, over the long term, is that the share prices are driven by the quality of the business and its earnings.

In other words, while the overall macro environment is important, it is not the driving factor for the investments. The portfolio manager’s core strategy is to identify businesses with deep, entrenched ‘moats’ around them which may be in the form of brands, distribution, technology or market share or any other reason through which it is able to maintain its competitive edge in an industry. Our benchmarking is based on the NIFTY 50 and the prime focus is to provide long term sustainable returns to our investors based on a maximum stock universe of 30 securities in order to diversify risk.

An investor’s objective under this portfolio is to generate capital appreciation over the medium to long term by investing in select equity shares and equity related instruments in a concentrated manner. The portfolio will typically have less than 30 stocks, however, in the case of a portfolio transition the number of stocks could be more. The target segment of investment ideas would be bottom-up and market cap agnostic.

The portfolio manager aims to invest through the bottom-up approach to stock picking in emerging and existing themes to take advantage of the overall economic growth cycle. The investment style of the portfolio would be a suitable blend of top-down macro themes and bottom-up investment ideas at the micro level.

Since the portfolio will have a smaller concentration of stocks, the key objective would be to look at a more customized approach to investments with investors with a longer term horizon i.e., three to five years

Portfolio Allocation

Portfolio allocation is across different sectors, but based on our bottom-up portfolio construction methodology and our focus on quality and long term earnings potential, the portfolio businesses are likely to fall within the following broad themes:

  • Consumption
  • Financialization
  • Digital first businesses
  • i-Outsourcing

 

Salient Features

The salient features of a bottom-up driven investment philosophy would include the following:

  • A key focus on fundamentals
  • Quest for value
  • Long term orientation
  • Margin of safety

Portfolio Management Schemes

Bay India Opportunities Portfolio

An investor’s objective under this portfolio is to generate capital appreciation over the medium to long term by investing in select equity shares and equity related instruments in a concentrated manner. The portfolio will typically have less than 30 stocks, however, in the case of a portfolio transition the number of stocks could be more. The target segment of investment ideas would be bottom-up and market cap agnostic.

The portfolio manager aims to invest through the bottom-up approach to stock picking in emerging and existing themes to take advantage of the overall economic growth cycle. The investment style of the portfolio would be a suitable blend of top-down macro themes and bottom-up investment ideas at the micro level.

Since the portfolio will have a smaller concentration of stocks, the key objective would be to look at a more customized approach to investments with investors with a longer term horizon i.e., three to five years

Portfolio Allocation

Portfolio allocation is across different sectors, but based on our bottom-up portfolio construction methodology and our focus on quality and long term earnings potential, the portfolio businesses are likely to fall within the following broad themes:

  • Consumption
  • Financialization
  • Digital first businesses
  • i-Outsourcing

Salient Features

The salient features of a bottom-up driven philosophy would include the following:

  • A key focus on fundamentals
  • Quest for value
  • Long term orientation
  • Margin of safety

Direct Onboarding Route

All clients have an option to invest in the above products / investment approaches directly. You can reach us at invest@baycapindia.com.