Investment Philosophy
Prudent Equity follows a bottom-up value investing approach to identify companies trading significantly below their intrinsic value, thus providing substantial upside potential with limited downside risk. Although our core principle remains towards capital protection, our strategy has proved to deliver outsized gains.
Our approach puts emphasis on company specific strengths such as financial prudence, sensible capital allocation, management that displays sharing wealth with minority, differentiated products & services, pricing power and many more.
Investment Criteria
01
Companies growing at high rates
02
Run by ethical management that treats the minority at par
03
Business ability to generate returns far above Weighted Average Cost of Capital (WACC)
04
Buying at a significant discount to intrinsic value
05
Management demonstrating prudent capital allocation over the years
06
Highly leveraged companies, frequent equity dilution etc are some of the traits which are avoided
Investment Process
Prudent Equity ACE Fund (CAT III)