Rangoli India Strategy

 

Rangoli India  Strategy

UNIFI Capital is an Investment Advisor to “Rangoli India Fund” which is an offshore India dedicated long only mid & small cap oriented equity fund.

INVESTMENT OBJECTIVES AND APPROACH:  
 

The investment objective of the fund is to achieve long term capital appreciation and to deliver superior risk adjusted returns through investing in equity and equity-linked instruments of Indian companies listed on the Indian stock exchanges.

In order to achieve the objective, the Fund strategy seeks to participate in opportunities that arise from a mix of emergent themes, corporate actions and attractiveness of core fundamentals through identifying investment ideas from the universe of existing thematic strategies being managed by the Advisor as described below:

 

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.

GreenFund : 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.

We will identify securities on the basis of fundamental and rigorous stock selection process backed by a strong research. The Advisor will focus on bottom-up approach for stock selection. We will identify stocks considering qualitative and quantitative analysis including earnings growth, capital efficiency, relative margin of safety to valuations and management integrity

 
INVESTMENT STRUCTURE

Rangoli India Fund (RIF) is an FPI Category 2 share class (Class P – Series A Participating Shares)  under K-India Opportunities Fund Ltd (KIOFL). K-IOFL is a collective investment scheme, incorporated and regulated under the laws of the Republic of Mauritius  and is Registered as Foreign Portfolio Investor (FPI) in India.

The Investment Manager of the fund is Kotak Mahindra (International) Ltd , Mauritius. 

Details of the fund can be obtained from Bloomberg using the following:

Bloomberg ISIN - MU0403S00222

Fund name - K India Opportunities Fund Limited - Rangoli India Fund