Long term Horizon
Keeping Costs/Churn Low
Investment Manager’s Focus
Flavour of the Season
Adopting a Concentrated Portfolio Approach
Universe400-500 Companies (based on Quality Filter)
Focus150-200 Companies (based on Growth Filter)
Core30-50 Companies (based on Valuation Filter)
Portfolio8-12 Companies with high growth potential
What goes into Finding the Right Stock
- Rich in possibilities
- High earnings growth
- Cost structure
- Switching costs
- Multiplicity of growth drivers
- Market adjacencies
- Technology adoption
- Aligned interests
- Efficient capital allocator
- Future possibilities
- Operating leverage
- Variant perception
- Numbers v/s Narrative
4 Step Research Process
Thematic views based on annual reports, on-ground reports and competitive analysis.
Look at basic hygiene factors and any deal breakers
360-degree approach to understand on-ground situation
What do we know that market does not?
ValueQuest Secret Sauce
Efficient and scalable growth enablement requires maturity in six key focus areas that can differ from company to company.
Lack of stable governance, clear hierarchies and transparent decision making processes can lead to major challenges in scaling.
Governance needs to be prepared for scaling and growth.
Organizational structures and functional operating models, that allow efficient operations while the organization is continuously changing, need to be defined and executed.
Structural requirements for growth need to be defined.
Technology and IT infrastructure are the backbones of the companies. Outdated technology and IT infrastructure might put business opportunities at risk.
Technology can’t handle upcoming demand.
Experienced employees and executives need the right skillsets within capability units. Jobs are changing and so are the required skillsets and capabilities.
Shift of required capabilities.
The company culture has to be adapted to suit the growth activities. Missing change initiatives can lead to frustration and demotivation among employees.
Change of company culture
Strong partners play a significant role to ensure healthy growth and secure the company’s success. Efficient partner management ensures leveraged scaling results.
Need for efficient partnering
Never buy on impulse, hold in hope and sell in panic.