UNIFI Capital Pvt. Ltd. Insider Shadow PMS


Key Portfolio Attributes

Inception Year: 2010

Number of Stocks: 15 - 20

MD & CIO: Sarath K. Reddy

About the Company:

Unifi is essentially a value investor in growth businesses. They place Value first but always also demand growth potential in a business they own. They believe that stock performance, particularly in mid and small firms, needs a catalyst; and often the best catalyst is an attractive price combined with growth.

Unifi believes that both micro (firm level) and macro risks are critical in determining outcomes. They carefully evaluate the fundamentals of each business that they own, and in addition ask the question if the prevailing and expected conditions in the economy will act for or against their interest. At times, while making longer term investments, they consciously trade off adverse macro conditions for terrific entry valuations.

Investment Objective

The objective of Unifi Insider Shadow Fund PMS is to generate superior risk adjusted returns, in relation to the broad market, by investing in fundamentally sound companies which have repurchased its own shares or where its promoters’ have acquired additional shares at market prices. Typically, such an action by a company or a controlling shareholder demonstrates their conviction that the company’s growth prospects or inherent value has not been captured in its stock price at that point. Unifi’s proposition is to gain from the eventual balancing of the value-price mismatch in the market by identifying and investing in such companies after a detailed review of their fundamentals and corporate governance standards.

Unifi Capital actively manages seven bottom up equity approaches that sift through opportunities across the breadth of the markets. Across the funds, the mandate is to participate in opportunities that arise from a mix of emergent themes, corporate actions and of course attractiveness of core fundamentals. The objective of all the respective funds under management is to deliver superior risk adjusted returns from an absolute perspective.

Investment Philosophy

Unifi Insider Shadow Fund PMS follows a Fundamentally Driven philosophy. This is a buy & hold strategy where investments are based on sustained growth of the Indian economy. Here, the time frame is 2-3 years.

UNIFI provides PMS services that have all thematic portfolios.

The Insider Shadow Fund PMS invests in companies which have repurchased their own shares or where its promoters’ have acquired additional shares at market prices. Such an action demonstrates their conviction on company’s growth prospects or inherent value not captured in stock price at that point. The proposition is to gain from the eventual balancing of the value-price mismatch in the market.

Investment Methodology

The approach of Unifi Insider Shadow Fund PMS is to create and update (on a daily basis), a universe of companies where the promoter is increasing his stake at market prices either through creeping acquisitions or buyback route, where complete disclosures of stock purchases have been made to the exchanges, and that seem to be motivated either by an undervalued stock price or an impending improvement in business prospects that are still to be reflected in the market price.

From this universe the Unifi Insider Shadow Fund PMS cherry picks for investment, firms using a bottom-up fundamental evaluation validated by the fund manager having a positive view of the sector in which the firm operates. An emphasis is placed on companies whose promoters have increased their stake in the recent past & where the current market price is trading at a discount or at an acceptable premium to the price at which the promoter increased his stake. The extent of financial outlay by the promoter or company has to be meaningful in relation to the size of the firm.




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return





Do Not Simply Invest, Make Informed Decisions

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Disclaimer

#Returns as of 31 Aug 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.




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Do Not Simply Invest, Make Informed Decisions