The objective of Unifi Rangoli India Fund – GIFT City domiciled Category III AIF is to achieve significant long-term alpha by maintaining a disciplined investment approach.
Unifi Rangoli India Fund – GIFT City domiciled Category III AIF aims to sell holdings when valuations exceed targets or when the investment hypothesis changes, ensuring a proactive and responsive investment strategy.
The investment philosophy of the Unifi Rangoli India Fund – GIFT City domiciled Category III AIF is centered on disciplined valuation and rigorous research. The fund focuses on buying quality businesses at prices that are commensurate with their growth potential, adhering to the Growth at a Reasonable Price (GARP) principle.
Valuations are sensitized to four key metrics: governance, sustainability of earnings growth, capital efficiency, and debt. Governance is assessed based on demonstrated capability and integrity, while sustainable growth is defined by earnings growth above 15%. Capital efficiency targets a return on equity above 15-18%, and leverage is kept in the bottom quartile of the sector.
Unifi Rangoli India Fund – GIFT City domiciled Category III AIF’s Portfolio construction is based on absolute opportunity and value, rather than being benchmark-driven. This approach involves building concentrated portfolios through bottom-up value investing and deviating from the benchmark when justified by value and opportunity. The fund is disciplined in its valuations and seeks to capitalize on market forces, such as cycles and sentiment.
The investment process of the Unifi Rangoli India Fund – GIFT City domiciled Category III AIF is systematic and thorough. It begins with evaluating the promoter’s background and history, followed by assessing the shareholding pattern and profiling the management team and board of directors.
Next, the competitive landscape is analyzed, focusing on industry capacity, demand and supply trends, and production forecasts. Industry engagement involves periodic interactions with industry leaders and professionals to understand developments.
Audited financial statements and annual reports are examined, emphasizing audit quality and management discussions. The balance sheet is assessed for leverage, working capital, and cash flow trends over the past five years. A comprehensive risk assessment is conducted, covering all business, credit, regulatory, and other risks.
The business’s past and future performance is reviewed, including credit ratings and rationale. Expert opinions are sought from external consultants and industry experts. Sector and company-specific exposure limits are confirmed.
Finally, Unifi Rangoli India Fund – GIFT City domiciled Category III AIF’s selected company’s investment rationale summary is prepared with assumptions and financial projections for two years. Detailed notes and analysis are reviewed before making an investment decision.
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