Valentis Rising Stars Opportunity Fund

Fund Snapshot

Investment Philosophy

• A long-term basic investment strategy is driven by research.
• Concentrate on companies that are nearing an “inflexion point” in their earnings cycle.
• Not prepared to pay high growth values. The motto is GARP (Growth at a Reasonable Price).
• When it comes to equities, it’s better to invest early rather than later. They invest in stocks that are under-valued, under-performing, and under-owned.
• Long-term investors should buy and hold. Portfolio churn is quite low.

Investment Process

Investment Process – Macro to Micro

• Global Indicators & Markets, Macro-Economic Analysis, and Industry Analysis are all part of the macro approach.
• Screening for Reasonable pricing, History of Earnings Growth and Return Ratios, Debt Gearing, and Free Cash Flows using a Bottom-Up Quantitative Approach
• Stock Ideas
  •   Meetings with company management, rivals, suppliers, and distributors, as well as Porter analysis
  •   Detailed financial models and analysis of management’s track record are part of the research and modelling process.
  •   The three “U”s: valuation (PE, PB, DCF, RoE, Free Cash Flow), ownership (FII, MF), and analyst coverage
• Portfolio construction is accomplished by continuous monitoring of growth metrics such as volumes and prices, as well as valuation monitoring to maintain a risk-return trade-off.

Focused Sector

• Companies that have a lot of operating leverage. As demand improves, this will most certainly kick in due to increasing utilisation levels.
• Invest in equities early, before they become popular with the market.
• Large market scale and enticing industry dynamics.
• In comparison to the competitors, the firm has a competitive edge.
• Corporate governance that is strong.

Investment Objective

The scheme’s goal is to increase money over the medium to long term by investing in carefully selected equities, particularly in the Mid and Small company area. Most of the time, the portfolio follows a purchase and hold strategy. Investors with a three-year or longer investment horizon should consider this option.

Why Choose Valentis

• Client-centric approach: Founders, fund managers, and analyst teams are all easily accessible.
• The founders have skin in the game: they would invest in the same fund as you.
• Our goals are the same as yours: Superior performance is rewarded with performance fees.
• Flexible options: We are pleased to collaborate with you to develop bespoke investment solutions.
• Strong pedigree and financial market experience: The founder has worked in the financial business for over 30 years and has effectively carved out a space for research-based, non-consensus viewpoints.