Core Investment Philosophy
The firm’s approach is built on the belief that superior long-term returns in small and mid-caps can only be achieved by treating listed investments with the same discipline and depth as private equity deals. Their strategy can be summarized by several key pillars:
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Private Equity Mindset: They prioritize an extensive research process (often 4–8 weeks per stock), a long-term buy-and-hold horizon, and a high-conviction, concentrated portfolio approach.
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Bottom-Up Selection: They avoid broad model portfolios, choosing instead to identify specific companies that exhibit dominance in niche verticals, have growth tailwinds, and possess strong, clean balance sheets with high return ratios (ROE/ROCE).
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Exploiting Market Inefficiencies: The firm seeks to capitalize on behavioral biases and judgmental errors of other market participants, often targeting companies that lack institutional research coverage.
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Risk-Calibrated Alpha: Their philosophy is rooted in finding high-growth businesses at reasonable valuations, ensuring that they do not overpay for growth.
Proprietary Risk Mitigation: "Price Guardrails"
A hallmark of Nine Rivers Capital’s process is its proprietary Price Guardrail Strategy. Recognizing the inherent volatility of small-cap investing, they assign a specific "entry price guardrail" and an "exit price guardrail" to every stock in their portfolio:
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Entry: They only acquire stocks when available within their calculated entry guardrail to ensure a margin of safety.
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Exit: They proactively exit positions the moment a stock breaches its designated exit guardrail, helping to manage downside risk and lock in gains.
Key Focus Areas
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Selection Criteria: They favor businesses with sustainable competitive advantages, clear growth drivers (policy changes, technology, or shifting consumer dynamics), and proven management execution.
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Exclusion: They maintain a cautious stance, actively avoiding businesses with fragile balance sheets, excessive leverage, or poor governance.
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Sandeep Daga
Sandeep Daga is the Founder, Managing Director and Chief Investment Officer of Nine Rivers Capital, an investment management firm focused on applying private-equity-style research and discipline to public-market investing. His investment career spans public and private equity, with experience across fundamental research, business evaluation, management assessment and growth-oriented investing. Daga founded Nine Rivers Capital with the objective of building an independent investment platform focused on long-term value creation. Today, the firm offers a range of SEBI-registered Portfolio Management Services (PMS) and Alternative Investment Fund (AIF) strategies for investors including HNIs and family offices.
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