Right Horizons Minerva Funds
Minerva India Underserved
Minerva India Underserved strategy largely focuses on businesses within under-penetrated categories that have much longer runways of growth. The core of the strategy is to capture value dislocations using a very forensic on the ground approach to picking stocks. Over the past 8 years, this strategy has flipped the common narrative around Indian smallcaps – Not only has the strategy handily outpaced broader markets since its inception, but it has also delivered this performance with sub-market volatility and without performance being skewed by 1 or 2 ‘stellar’ years for the asset class.
WHY YOU SHOULD INVEST
1. Portfolio – Clear focus on clean businesses with secular growth. More than 2/3rd of all picks since inception have outpaced broader markets and immediate peers.
2. Process – Thrives on analytical intensity and investing discipline. Focus is on process and not outcome.
3. Performance – Since Inception, the strategy has delivered returns higher than small, mid, and large caps, while exhibiting volatility lower than that of even Nifty 50.
Meet Our Manager
Piyush Sharma, born and raised in India, Piyush Sharma is manager for India Under-served. Having spent time with Citigroup and Bombay Stock Exchange in India, he moved to United States in 2002, where he covered stocks within Business Services, Autos, Consumer Products and Financials with Sanford Bernstein, Longbow Research, and Avondale Partners, working in teams that received accolades from leading institutional research arbiters, including Institutional Investor (II) and Greenwich Associates. Piyush received an MBA from University of North Carolina at Chapel Hill, MS from MNNIT, and BS in Accounting from University of Allahabad.
Minerva India Undervalued
Our India undervalued strategy is typically a collection of our 10 to 20 best value ideas, all of which coherently fit within our value, forensic and fundamental framework. Similar to India Underserved, India Undervalued is offered in an unconstrained form , I.e no floor or cap on net exposure. India undervalued is targetted at investors that seek to capitalise on value dislocations through identifiable catalysts. entities.
WHY YOU SHOULD INVEST
1. Portfolio – Focuses on businesses with long runway of growth ahead and excellent shareholder friendly management (demonstrated passion to grow business cleanly on a sustained basis).
2. Process – Investing discipline and low turnover (12% last 7 years) maintained at all times. Management quality (capability and ethical makeup) is tracked regularly via qualitative and quantitative metrics.
3. Performance – Historically, strong and quick bounce back from irrational clubbing with broader small-mid-cap indices post down years. Has significantly outperformed small-cap index since inception (10% vs. 5% annualised). Truly long-term partners will achieve the best results as opposed to those who (likely futile) try to time.
Meet Our Manager
Gaurav is the manager for India Undervalued since November 2010. Prior to this, he was a senior analyst with portfolio management duties over $50 million in fund of fund assets at a leading regional investment bank (Global Investment House) in the Middle East. Earlier, he was with Bay Harbour Management, a $1.2 billion distressed debt and equity hedge fund in New York City. He has also served as an analyst with Polen Capital Management, a $8 billion+ long-only firm with a very successful long-term track record. He received an M.S. in Accounting (specializing in Finance) and B.S. in Business Administration from the University of North Carolina at Chapel Hill. He has also passed all levels of the CPA exam. He has publicly committed to create an India investment corpus by initially allocating 25% (10% already allocated in 2017) of his annual share of earnings (net management and incentive fees) from fund management.