Blended - Rangoli Fund


Unifi Capital actively manages six bottom up equity strategies 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.

The Blended Portfolio Strategy is targeted at individuals who have a relatively longer term horizon and seek a passive style of investing which relies on the fund manager’s discretion of choosing the best opportunities from UNIFI’s thematic fund universe in a dynamically changing investment universe.

Investment Strategy

Investments under this fund will be cherry picked from across the portfolio of companies that Unifi manages across each of the 6 distinct funds it manages. In effect, the endeavor is to be able to identify the “the best of the best”. This fund aims in cutting down the investors switching cost and effort in migrating between best opportunities at any diverse point of time.

Value creation requires a mental model which goes beyond the obvious. It requires a meticulous mindset which is able to sift through reams of information and assimilate only that which is relevant in identifying value accretive opportunities. Metaphorically this could be compared to searching the proverbial needle in a haystack. This fund investment strategy will be to pick the best opportunities from the following themes.

Spin Off: In a single corporate structure with multiple businesses, the sum of the value of the separate parts is often less than that of the whole. A de-merger of disparate businesses, unlocks the financial and management bandwidth required for the respective businesses to grow. Spin off fund invests in situations that offer great scope for the businesses to realize their full growth potential and attract commensurate market valuation.

DVD: Few segments of the market tend to be mispriced in spite of visible growth prospects, resulting in such stocks trading at a deep discount to their intrinsic value. Reasons could vary from inadequate understanding of a business by most analysts, low relative market cap and liquidity or the lack of correlation to benchmark indices. DVD invests in such businesses and exploits market inefficiencies.

HoldCo: Many holding companies are run as group holding companies rather than strategic investment companies. This results in a perennial discount in their valuations but such discounts are not a constant. The Holdco fund identifies strong underlying businesses and looks for massive valuation discounts that are likely to recover as promoters feel the heat of change in the regulatory landscape; meantime benefiting from value convergence in a rising market.

APJ 20: As always, markets fancy few sectors that have done well in the past ignoring the rest. Of the sectors which are less understood, few like specialist chemicals, agri, precision manufacturing have become globally competitive and are privy to an expanding market opportunity. APJ20 invests in firms that have evolved and are in a ripe position to benefit from such growth prospects.

Green Fund: The investment focus of the green fund is on companies which provide products and services that help in reducing the carbon footprint in the environment and/or result in more efficient use of natural resources. Within the context of this strategy, the sectors that have been identified for creating the portfolio are - emission control, energy efficiency, water management and waste management.

Insider Shadow Fund: The Insider Shadow Fund 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.


The fund’s investment universe would include the diverse investment opportunities within the following mentioned funds at any specific point of time: SPIN OFF, DVD, HOLDCO, APJ20, Green fund and the Insider Shadow Fund.

The fund’s investments will be majorly concentrated in small and midcap space wherein it is difficult for “institutional” type of capital to invest and where Unifi’s relatively smaller size helps us to focus in niche areas of the market.

Portfolio Structure

The portfolio is likely to have around 15 stocks in the PMS platform. The investor's assets will always remain in the investor's name with ILFS as custodian. While the tracking and monitoring of the investments will be active, the activity level of trades will be passive.