Bellwether Capital Pvt Ltd 508 Raheja Chambers, Free Press Journal Road Nariman Point, Mumbai - 400 021 T +91 22 6654 8178 F +91 22 6654 8177 www.bellwethercapital.in
I question. I dare. Istick my neck out. Isee my goal.
And then I see a little more
In investing as in life, every moment is an opportunity. Every opportunity is a risk. We are a boutique portfolio management company that seeks to take the higher ground, by identifying the opportunity, calibrating the risk, valuing tomorrow and unlocking value.
We dare you to live your finest life
We are an equity portfolio management company that aims to invest in a future that inspires and maximises value
At the heart of our investment philosophy, is a conviction that ownership of equity in well managed and ﬁnancially sound companies today, is the best source of income and wealth tomorrow
Structure Equity Portfolios
We aim to create customised equity portfolios for our clients by combining the fund management ﬂexibility of a successful investment boutique, with the scalability and expertise of a major investment house.
We specialise in management of equity portfolios for private clients and their families and where called upon, seek to render general investment advisory services on asset allocation.
We attempt to understand a client’s personal circumstances and work around them. The investment approach is professional – timely investment decisions, based on high quality research, analysis, judgement and pragmatism.
While we understand the value of large fund management houses and private banks, we recognise that the service model offered by these institutions may be inappropriate for certain individuals. The misalignment of interests, both functionally and economically, creates a demand for the Bellwether solution.
Our investment philosophy stems from the belief that we possess the inherent expertise to recognise, analyse and monitor investment opportunities. We believe with our mix of money management experience, we are ideally positioned to leverage this strength in our investment style.
The administration of each portfolio is streamlined with regular, easy to understand information on the progress of each portfolio. The objective is to release a client from paperwork, ﬁnancial jargon and book keeping for taxation, which is intrinsic to transacting on one’s own account.
Corporate Social Responsibility is part of who we are and we focus on initiatives that help create wealth – beyond tangible connotations. We believe that wealth for society means building a better, fairer and valuable tomorrow. Urban Youth by Family India is one such initiative which we sponsor.
Everything we do is led by a set of simple promises that define our character and are at the core of Bellwether’s philosophy. I take my risks, and then my rewards
Long Term Value
Your securities and cash are in safe and dependable hands and are ring - fenced from Bellwether's balance sheet.
We invest in listed equity for the medium to long-term and develop relationships with the management in an effort to unlock value.
We believe in going off-radar. We ﬁnd investment ideas overlooked by others and take signiﬁcantly large positions to create superior market returns or “alpha”.
We insist on maintaining an accent on privacy, honesty, business ethics and integrity across all business dealings.
Veering away from being asset collectors or brokers, we place a strong emphasis purely on being asset managers.
The edge is enchanting. I’d do anything to go beyond. Our vision is to be your preferred money manager chosen for our investment philosophy and our personal relationships
Bellwether is a boutique investment firm known for efficient application of its best ideas in our investors’ portfolio.
Investment Philosophy Investment Criteria Investment Process Portfolio Structure Research & Guidance Client Philosophy Administration
Bellwether uses the value investment philosophy, which is based upon the belief that over time, a company’s stock price converges with the company’s true business value.
Although our portfolio is a mix of large-caps and mid-caps, our investment focus is biased towards mid-cap stocks, which have the potential of becoming large-caps of the future.
This is based on the belief that there exists ample opportunity to unlock value and provide a reasonably attractive return in the mid-cap segment. It carries the twin advantages of low valuation and large growth.
We use a “bottom-up” approach, focusing on individual companies, rather than economic factors or specific industries.
We believe that investing in a stock, which is priced significantly below its true business value, presents the best opportunity to achieve our investment objective.
Research and analysis We use research to collect information, analyse each company and validate our ideas. Meet and review We personally meet, review and form relationships with promising companies to validate our investment rationale.
Buy and sell We buy stock when a company is selling at a discount and has the necessary ingredients in place. Allthough a moving target, we typically sell a stock when it has reached a premium to intrinsic value. Monitor and adjust We monitor each holding and adjust our buy and sell targets to reﬂect changes in a company's fundamentals.
We look for companies with certain key ingredients which qualify as a “Bellwether Pick”.
In our assessment of investment opportunities, we seek to invest in companies which have the following attributes:
Hence our key tenets for investment are: · Buy businesses that are trading at a signiﬁcant discount to the intrinsic value · Invest in growing businesses with positive free cash ﬂows and intelligent investment of cash · Invest with management teams that think and act as owners
· Free cash ﬂows and intelligent investment of excess cash · Earnings that are growing and relatively predictable · High level of manager ownership
Research & Guidance
Our portfolio structure is a mix of large-cap and mid-cap but is fairly concentrated. We believe diversification is the laziest form of investing.
Small is big We believe that holding a relatively small number of stocks allows our best ideas to have a meaningful impact on fund performance. Hence, your portfolio will typically hold 12-15 stocks, depending on your investment objective and risk proﬁle.
Long-term investment We have deduced that it takes a minimum of 18-36 months for the market to discover an undervalued stock. Hence, implementation of our investment philosophy steers you towards a long-term investment horizon.
We believe that it is possible to outperform stock market indices by high quality research backed by an understanding of market dynamics.
We adopt a four-fold research process: 1. Screen Screen stocks across the Indian universe at a desktop level to ensure they meet basic investment criteria.
3. Meet Meet management of these shortlisted stocks for a ﬁrst-hand look and feel.
2. Shortlist Create a shortlist of 25 stocks for indepth quantitative and qualitative research.
4. Invest Invest in 8-12 of these mid-cap stocks in conjunction with our large-cap picks.
As a boutique service, we seek to provide you a “Personal Financial Advisor”. Our attempt is to build a loyal clientele, with a mature medium to long-term investment perspective, implying an investment horizon with Bellwether of 12-36 months.
Understanding equity Our typical client is a “reference client”, who has prior assurance of our credentials, as against a “walk-in” client. He understands the basic premise of equity as a face-off between intelligent risk and exponential reward.
Our investment advisors are committed to maximising your income and wealth.
Although, we encourage interaction with a client while structuring a portfolio, we are a discretionary portfolio management company and construct and modify portfolios, entirely at our discretion. We would, as a matter of form, intimate and seek views of our client, if we were to make a significant structural change in the client’s portfolio.
Customized solutions Depending on your risk proﬁle, we customize each portfolio to meet your investment objectives. Notwithstanding the future course of equity markets, which are often inﬂuenced by extraneous and uncontrollable factors, we aim to provide a return superior to the average market return.
Reporting Bellwether’s portfolio performance and reporting is web based. Every client accesses his portfolio on our website with a personalised password. All contract notes, bank statements, custodian statements and ledger accounts are sent on a quarterly basis. We also provide you with a gain/loss statement every quarter, to enable you to meet your advance tax obligations, well in time. If required, we also provide you with the services of a tax consultant, to enable you to meet your tax ﬁlings and other tax obligations.
Miten Mehta, Fund Manager
Ranjit Dongre, Client Relationships
WS Ravishankar, Equity Research
Miten spearheads the company’s overall investment philosophy and process. He is responsible for modelling portfolios, allocating funds, monitoring performance and risk control measures across portfolios. With over 20 years in securities, he brings to the table discipline, vigour, passion and an ability to identify winners.
Ranjit is responsible for raising assets at Bellwether by developing and maintaining client relationships. With over 15 years in investment banking he is instrumental in fund raising, client acquisition, fund administration and regulatory aspects. He is also involved in broad investment strategy.
Ravishankar is responsible for equity research for the business. His 15-year expertise in equity markets brings a fundamentally sound approach to every investment idea. His quest for discount to intrinsic value typically creates and complements Bellwether's margin of safety.
Documentation When we take you on a client, you ﬁrst need to open an account with us. In line with our boutique standards, each client is managed with absolute individuality. All accounts - bank, stockbroker and custody account are opened in the name of the client and we operate these accounts with a limited Power of Attorney (PoA) given to us by you.