August 2014

Wonder Companies

In two & half years our portfolio strategy - Wonder Companies - has delivered more than 100% return. After India Equity & India Dedicated this is the third offering in a row which has doubled money in less than three years. The mandate of the fund was very different with the objective being to focus on companies which can significantly multiply their earnings. This was done with the understanding that it’ll have a huge positive impact on shareholders return. By design the fund was to discover sunrise sectors and invest in leaders of those sectors. The average market capitalization of the fund is around one billion dollar. Even after investing in mid-sized companies the fund managed company specific
risk by investing in robust age old businesses with the average age of companies in wonder companies being around 50 years. We also manage volatility of the fund at a very low level which is very vital when investing in mid and small cap companies.

By virtue and design Wonder Companies is supposed to discover multi baggers. Since inception we invested in 17 companies and made three changes till date. Eight of the 17 companies delivered more than 100% return while the fund has delivered more than 55% absolute alpha. This has helped us demonstrate our ability to identify winners. We remain committed to our investors and will continue to research and invest in best of the businesses in India.

If you want to read our past views on the market you can read our blog below

http://investmentstrategyindia.blogspot.in/