What to expect from ITUS Capital’s Fundamental Value Fund PMS?
Itus runs a multi-cap fund with a focus on cash-flow growth in the public markets. The philosophy of Itus from an investment process is driven by 3 steps:
- Invest in businesses that generate cash flows
- Monitor the promoter and management’s ability to reinvest cash flows into the business (Return on Incremental Capital)
- Do not pay up to own these businesses
Our Investment Strategy at the firm is governed by the GPCG framework – we look for ‘G’- Growth at a reasonable price ‘P’, where we never sacrifice the ‘CG’ – Corporate governance. The CG is measured through quantitative metrics (from the Balance sheet) eg : CA Fees as a % of revenue growth, Shares pledged, Related party transactions, holding company / operating company structure and Qualitative metrics where we do a background check on the management and promoters along with their interaction with their eco-system and partners.
Who should invest in this PMS?
Every client who is constructing or looking to construct a Core portfolio, with a focus on cashflow growth, stability and long-term vision to build significant wealth with smaller drawdowns. The clients of ITUS include business owners, partners of VC & PE funds, CEO’s of publicly listed & private companies in India & a large single-family office out of the US. The average(median) invested capital from, a single client stands at INR 3 Cr today, which is one of the largest in the country for any PMS.
