Carnelian Capital Compounder Strategy

The investment objective of the Carnelian Capital Compounder Fund-1 is to generate long-term sustainable alpha across market cycles through

• Focus on fundamental driven growth investing

• Bottom up stock picking using our unique “PIU Framework”

• Long term, multi-cap, sector agnostic investing

Investment Universe – Indian listed equities. We constantly scan our universe to find ideas

which meets our MCO framework (explained later), Internal rating scorecard – PIU & Risk framework.

• We believe investing success is an outcome of making good decisions consistently over a long period of time.

– good decisions are those which are made “objectively, free of any bias”, considering “probability of outcome” and factoring “risk reward”.

• We believe in investing in good growth businesses, managed by great managements at fair valuation

• We believe margin of safety does not necessarily lie only in price, but can be sought in detailed work

• We believe one can never make money on borrowed conviction.

• We are happy to be contrarian when risk reward is compelling: mimicking herd = regression to mean

• We believe in being patient and long term. Investing is like watching grass grow.

• We prefer definite returns over immediate returns

• We don’t mind sitting on cash if we can’t find a better use

• Long only, multi-cap and sector agnostic strategy

• Aim to generate sustainable alpha & compound capital through our unique MCO framework

  – unique & unconventional blend of companies – Magic (accelerated growth), Compounder (stable growth) & Opportunistic

• Focused on fundamental driven growth investing; bottom up stock picking

• Unique forensic framework “CLEAR” help avoid accidents

• Portfolio of carefully selected 20-25 stock