Nine Rivers Capital -Aurum Small Cap Opportunities

Private Equity Approach to Small Cap Investing.

Key Portfolio Attributes

Inception Date: 31 December 2012

Number of stocks : 12-15

Fund Manager Name: Vivek Ganguly

Fund Manager Experience: 22 years of investing experience; Principal at Global Environment Fund, Fund Manager at Quantum AMC

Fund Manager Qualification:MBA Finance - Calcutta University and B.A - Nagpur University

Investment Approach

Nine Rivers adhere to a disciplined 360-degree approach to investments that requires us to remain nimble & inventive in our thinking at all times. They endeavour to buy solid businesses that exhibit multi-year structural growth run by good management teams and are available at a significant discount to their intrinsic value.

They generally look for the following attributes in prospective investee companies:

  1. Being a dominant player in a niche vertical
  2. Aided by policy tailwinds / changing consumer dynamics / technology etc
  3. Robust balance sheets – we stay away from fragile balance sheets
  4. Business generates / has the potential to generate high ROE / ROCE
  5. Non / under coverage by ‘sell side’ analysts.

Their proprietary ‘Price Guardrail Strategy’ – key to credible risk mitigation

They have developed a proprietary framework that we deploy to assign an ‘entry price guardrail’ and an ‘exit price guardrail’ to each stock that is approved for investment. They strongly believe that the most effective risk mitigant in small and mid-cap investing is to ‘not overpay’ to buy a stock and therefore we assign the aforesaid guardrails to each stock. They buy a stock as long as it is available within our entry price guardrail and we sell a stock the moment it breaches our exit price guardrail. Their Price guardrail framework has helped us contain excessive volatility and significant drawdown in our portfolio despite the many turbulent events in the market over last few years.

Investment Process

Based on the key learnings from their private equity legacy, their investment process is a confluence of qualitative and quantitative analysis wherein each of our team members get ample opportunity to do ‘original’ thinking and yet adhere to a prescribed discipline leading to superlative outcomes.

Do Not Simply Invest, Make Informed Decisions


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Related Investment(s)

Do Not Simply Invest, Make Informed Decisions