Turnaround Opportunities Fund
Fund Snapshot
| Year of Inception | 30th October 2014 |
| Number of Stocks | 15-20 |
| Investment Horizon | 3-5 years |
| Fund Managers | Anup Maheshwari |
Investment Philosophy
The investment industry is a cutthroat space where companies constantly fight for investment dollars. To survive, these investment firms need to have the most innovative products and services on the market. Our Turnaround Opportunity Fund has been doing that-helping good businesses succeed by providing capital during their time of need. Please go through this article from start to finish so you can see what makes them different in a crowded market!
The Turnaround Potential Fund is looking to build a portfolio of firms with a demonstrated track record that have the potential to see significant improvements in fundamentals in the future.
Businesses frequently experience short-term swings in profitability and development, owing to a variety of reasons, including:-
- Suboptimal capital allocation
- Policy & regulatory changes
- Behavioural shifts
- Weak economic activity
Investment Strategy
The objective is to acquire stakes in firms that have the potential to return and create value.Value creation, organization disruption & re-rating
Turnaround event Improving fundamentals:
To begin with, businesses may experience disruption or downturns due to a variety of reasons.
Furthermore, firms respond to these declines by taking measures such as implementing strategic, organisational, operational, or financial services and financial counsels to stabilise their businesses.
Third, the plan is to identify and invest in businesses on the verge of recovery or turnaround, producing long-term value. During the fund’s term, there may be times when promising turnaround possibilities might not exist. In such cases, the investment manager may invest in secular opportunities under the SCDV framework.
Unique Feature
Type: The fund is a closed-ended credit or category III Alternative Investment Fund of the Asset Management Company.
Tenor: Up to ten years from closing date [further 2-year (2 extensions of 1 year each) extension subject to the approval of Two-Third Majority of the Contributors].
