Our investment philosophy is guided by the classic principles of Value Investing. We look for a sufficient Margin of Safety as a part of our research process. This helps us in achieving our objective of absolute returns and capital preservation over the long term. We try to follow a disciplined entry and exit strategy, with a contrarian bias rather than a very long term “Buy & Hold” strategy.
We are on a constant look out for Price Value Mismatch opportunities.
Potential opportunities are subject to rigorous and comprehensive appraisal for their Intrinsic Value and only those opportunities, which are available at a comfortable discount to their Intrinsic Value, are taken for further detailed research and analysis, thus affording both, a healthy Margin of Safety, as well as a high upside potential.
Every business/asset represents a stream of future cash flows, which determines the Intrinsic Value of that business/asset. It is the estimate of this Intrinsic Value, which forms the very basis of all our investment decisions.
Price changes everything! We believe that there is a big difference between a “good business” and a “good investment”. That difference is PRICE!
A great business at the wrong price might turn out to be a lousy investment, while a mediocre business at a great price can be a phenomenal bargain.
We at SKS Capital are constantly on the look-out for such bargains.
We seek absolute returns from our investments over medium to long term. We also follow a dynamic asset allocation model. Based on underlying opportunities assets are shifted between asset classes such as Equities, Debt, Alternatives and Cash. This helps us generate absolute returns over time irrespective of the market cycles.