Generational Capital Breakout Fund I – Category III AIF

Generational Capital Breakout Fund I – Category III AIF is a growth-oriented alternative investment fund aimed at creating the highest risk-adjusted alpha for its investors. Founder Satwik Jain emphasizes that every bull market has leaders that create wealth in multiples, with patterns for wealth creation remaining consistent over decades. Generational Capital’s endeavor is to invest in the leaders of the next bull market with a 3-4 year view. The selection focuses on companies with a strong historical track record, clean accounts, minority-friendly management, high economic profits, and future earnings momentum. This momentum is expected to accelerate through factors such as mega capex, management changes, and product mix transformations, all identified using their 25-25-25 framework.

Generational Capital Breakout Fund I – Category III AIF adopts a diversified approach, identifying major trends along with monopolistic and fast-growing capital-efficient franchises. The fund targets businesses with reinvestment runways managed by able and minority-friendly leadership. Staying true to its core philosophy of growth at a reasonable price, the fund leverages the 25-25-25 framework to evaluate and invest in companies positioned for sustained growth.

The Generational Capital Breakout Fund I – Category III AIF employs a meticulous six-step investment strategy:

1. Sector Identification: Focus on sectors experiencing consolidating profit pools.
2. Fraud Detection: Use proprietary forensic accounting tools and a fraud search toolkit to identify companies with dubious histories or questionable promoters.
3. Sector Leadership Bias: Prioritize leaders in sectors where profit pool consolidation creates winner-takes-all scenarios, resulting in modern monopolies.
4. Capital Allocation Analysis: Review the history of capital allocation to eliminate inefficient allocators and focus on disciplined strategies.
5. Competitive Advantage Identification: Pinpoint sustainable competitive advantages that preserve high returns on capital.
6. Portfolio Construction: Curate a concentrated portfolio of the top 15-20 winning breakout businesses.

This strategic framework ensures that the Generational Capital Breakout Fund I – Category III AIF invests in companies poised to lead the next bull market while maximizing returns for investors.