Negen Capital Emerging Opportunities Fund

• Idea Generation: A distinctive combination of Special Situation Investing is present in most portfolio firms. It gets inspiration from mergers and changes that are promoted by better management. These circumstances have resulted in Alpha Returns.
• MEGA Trends: Negen Capital recognises Mega Trends and makes investments in the businesses that stand to gain the most from them. Due to their early investments in consumer tech companies, Negen produced alpha returns.
• Conservative Approach: Avoid PSU and cyclical investments. Negen has 6.74% CASH on hand and is seeking new chances.

• Every second, three new users join the Internet.
• Every moment, 5 smartphones are sold worldwide.
• India has been ‘Internet-unified as a result of Jio.
• India is experiencing an early technological revolution.
• Negen Capital are witnessing a technological supercycle.
• Every decent-sized business will upgrade its IT infrastructure in the coming years.
• Pure technology platforms, as well as IT product and service providers, should experience unprecedented structural growth.
• These businesses are typically debt-free, have a high RoIC, a high FCF, and, most importantly, are growing.

1. Special Situations: Investing in value with a trigger

Mergers and acquisitions and Promoter changes.

1. Technology: A continuous supercycle

Indian Technology and Global Technology (FAANG plus)

1. Nowadays, it is done differently. It is known as Special Situation.
2. Mergers and Acquisitions We are interested in two themes: change and evolution.
3. A demerger is performed to free up value.
4. New promoters buy companies to maximise profits. It increases shareholder value.
5. Berkshire Hathaway is a poster child for what promoter change can accomplish. Warren Buffett purchased it for $14, and it is now worth $408,000.
6. Adani Group is a great example of how a large conglomerate can incubate and demerge smaller businesses, creating enormous shareholder value.
7. Negen Capital do not decide to purchase random, low-cost stocks from the market. These stocks are inexpensive for a reason.
8. They only buy cheap stocks if they demerge or a fresh promoter buys the company to create value.

1. The PMS has taken a cautious approach, keeping cash on hand in unforeseen events. As of December 21, the PMS had retained 6.74% of its cash and generated alpha returns with 93.26% investment.
2. They reduce risk by avoiding cyclical, commodity, and PSU investments.
3. They focus on technology, information technology, mergers, and promoter changes.

Mission: Their mission is to create consistent profit but without taking too much risk. Our portfolio largely contains debt free companies, 25%+ RoIC businesses and companies with long term growth potential. All of these are either Special Situations or from the Technology basket.

Vision: They want to create Alpha for our clients consistently. We want to be able to satisfy all the investment needs of our clients whether it is from Indian Capital Markets, Startups or American Investing.

Values: They, at Negen Capital PMS want to generate Alpha the right way without taking undue risks of Cyclical stocks. We own companies with High RoIC, Growth and ones which are generally debt free.
You would not find us owning companies from Metals, Sugar, Commodities, Power, Infrastructure, Real Estate sectors. We also refrain from buying PSUs.
*Unless ofcourse, there is a Special Situation opportunity from these spaces.