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 its overall financial strength, management that displays sharing wealth with minority and sensible capital allocation.
 

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

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Investment Process

Prudent Equity ACE Fund (CAT III)

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