"Wide diversification is only required when investors do not understand what they are doing."
- Warren Buffett
The Fund is
a diversified fund with focus on few key strategic sectors that exhibit superior business economics, relatively low capital intensity and sustainable & high return on capital employed.
At Axis, we go overweight on integrity, management capabilities and ownership driven values in selecting investment opportunities.
Focus on businesses with unique advantages
The Fund would provide expansion/ growth capital to companies which have a dominant position in their field and are attractively valued compared to their local as well as global peers. We generally look for business models that exhibit certain key attributes like:
High entry barriers
Strong corporate governance
Intellectual Property Rights (IPRs)
Proven & commercially viable technologies and business processes
Exploiting market inefficiency
The Fund retains option to invest in companies which are undervalued due to certain short term events such as crystallization of past liabilities etc. which may have a short term adverse impact but no long term impact on business fundamentals.
We are not going to be constrained by criteria such as size, sector, instrument etc. as long as we understand risk and return associated with business we plan to invest in.