Overview

Our Moats & Special Situations Portfolio (MSSP) is a Large-Mid long-only equity solution that was started in 2011. Its primary objective is to identify and invest in the companies which have a wide and deep sustainable competitive advantage (a Moat) over other companies in the same industry. This helps to maintain profitability and growth, adding significant economic value for shareholders over time.

Investment Process

Capital preservation is the top priority of this strategy and thus focuses on controlling risks. It therefore focusses on companies with clear and sustainable competitive advantages (Moats) and buying them at or below fair valuation. The strategy also focuses on companies which are non-moats but enjoy cost leadership or are available at deep valuation discounts as special situations. The strategy avoids unproven business models and turn around stories, and is disciplined with regards to valuation. Generally, the portfolio is invested in those companies which provide high prospective returns over the estimated cost of equity. In an environment where there are limited opportunities in the market due to overvaluation, the portfolio would hold cash. This limits the risk of permanent loss of capital and ensures superior risk adjusted returns.