Negen Undiscovered Value Fund

In the bustling heart of Mumbai’s financial district, a small but ambitious firm was quietly making waves. This was Negen Capital, founded by Neil Bahal in 2007, a man with a passion for uncovering hidden gems in the world of investing. For years, Neil and his team honed their craft as sub-brokers, helping retail investors navigate the complex world of stocks and securities. As the years rolled by, Negen Capital’s reputation grew. In 2017, they took a bold step forward, launching their own Portfolio Management Services (PMS). Their knack for spotting value and managing risk didn’t go unnoticed-by 2021, CRISIL, a respected rating agency, awarded their PMS a coveted 5-star rating in the multi-cap category. This was a sign: Negen Capital was ready for the big leagues.

Neil and his team knew there was more to investing than just following the crowd. They believed that the real treasures lay hidden in the corners of the market-companies overlooked, undervalued, or on the cusp of transformation. With this conviction, they set out to create something new: an Alternative Investment Fund (AIF) that would focus on “undiscovered value.” In September 2023, their vision became reality. The Negen Undiscovered Value Fund was born, registered with SEBI and ready to welcome high-net-worth individuals seeking something different from the usual mutual fund fare. The fund’s philosophy was simple but powerful: find undervalued assets, invest with a catalyst in mind, and protect capital at all costs. Neil and his co-pilot, Jigar Shah, scoured the markets for special situations-companies about to spin off a division, management teams in the middle of a turnaround, or businesses preparing for their IPO debut.

They weren’t just looking for bargains; they were searching for stories-events and changes that could unlock hidden value. Whether it was a pre-IPO opportunity, a demerger, or a company about to land a big contract, Negen wanted to be there before the rest of the world caught on. Their strategy quickly paid off. In just a few months, the Negen Undiscovered Value Fund delivered a remarkable 40.92% return, far outpacing the BSE 200 benchmark’s 12.32%. Investors who believed in Negen’s story saw their faith rewarded, as the fund consistently outperformed the market.

At the helm, Neil Bahal brought decades of market wisdom and a relentless curiosity. Jigar Shah, the fund manager, was the analytical engine, turning ideas into actionable investments. Together, they led a team that combined deep research with a disciplined approach to risk-never forgetting that protecting investors’ capital was just as important as growing it. Negen Capital’s journey is still young, but their story is already inspiring. They’ve shown that with the right mix of curiosity, discipline, and courage, it’s possible to find value where others see none. Their Undiscovered Value Fund isn’t just about making money-it’s about rewriting the rules of what’s possible in Indian investing. For investors seeking more than just the ordinary, Negen’s story offers a compelling invitation. And so, in the ever-changing world of finance, Negen Capital continues its quest-one hidden opportunity at a time.

Negen Undiscovered Value Fund represents the inaugural AIF scheme introduced by Negen Investment Trust, duly registered with SEBI as a Category III Alternative Investment Fund (AIF).

The investment objective of Negen Undiscovered Value Fund CAT III AIF revolves around the identification of undervalued investment prospects, pinpointing catalysts like corporate actions, enduring industry shifts, or regulatory reforms. Through this approach, Negen endeavors to yield compelling risk-adjusted returns spanning various market segments, including Special Situation Investments, Pre-IPOs, and Anchor book investments.

The investment philosophy of Negen Undiscovered Value Fund CAT III AIF is based on 3 core principles:

1. Uncovering Undervalued Assets:
   Negen Undiscovered Value Fund diligently seeks out undervalued assets across various market segments, encompassing Special Situations, Pre-IPOs, and Anchor book investments.

2. Catalyst-Driven Approach:
   The fund adopts a catalyst-driven investment strategy, targeting opportunities that exhibit identifiable catalysts. These catalysts may include corporate actions, enduring industry trends, regulatory alterations, or proactive management initiatives.

3. Risk Management:
   At the forefront of Negen’s investment philosophy is robust risk management. The fund emphasizes the protection of capital and the mitigation of downside risks. Investment decisions are informed by a disciplined methodology, comprehensive due diligence, and continuous monitoring of portfolio holdings.

These guiding principles underpin Negen’s pursuit of investment opportunities poised to deliver attractive risk-adjusted returns.

Negen Undiscovered Value Fund CAT III AIF is follow the below mentioned investment strategies:

1. Special Situations Investments:
   Negen Undiscovered Value Fund proactively pursues investment opportunities within special situations, including management changes, spin-offs, distressed assets, turnaround prospects, and restructuring scenarios. These situations frequently present avenues for value creation, offering the potential for compelling risk-adjusted returns.

2. Anchor Book Investments:
   The fund actively seeks participation in the anchor book segment of IPOs. Typically, the Anchor book or Qualified Institutional Buyer (QIB) portion of an IPO sees lower subscription rates compared to the Non-Institutional Investor (NII) and Retail Individual Investor (RII) segments. This positioning grants Negen access to new issuances, potentially capitalizing on price appreciation post-listing on the stock exchange.

3. Pre-IPOs:
   Negen is keenly interested in investing in SME-Pre IPOs, enabling investors to tap into the growth potential of companies before their public listing. By identifying promising firms at this pivotal growth juncture, the fund aims to capture the value appreciation that may transpire upon their IPOs.

4. Other Investment Strategies:
   Additionally, the fund incorporates regular value investing strategies, targeting the acquisition of high-quality businesses trading below their perceived fair value. This approach complements Negen’s broader investment framework, diversifying opportunities for generating attractive returns.