Our Goal
The goal at Dwaith Funds is to beat all major indices – S&P 500, MSCI Emerging markets, Russell 2000, Barclays US Aggregate, Nasdaq Composite and Sensex (India) over 5 year period. We believe, if we are able to achieve this, we would have beaten over 90% of the Hedge Funds in the market today.
Investing Journey
Harsha has been investing his personal money in stocks from early 2000’s with the aim of beating Bank FD (Bank Fixed Deposit) rate of returns and to build wealth that will be preserved over the long haul. He has achieved a CAGR of 37% in his personal portfolio (over 8 years) before getting encouragement and money from TJ Rodgers, to start a fund. Endurance and permanence of capital along with reasonable growth is his prime objective. Dwaith Funds will embody the same spirit and would invest in stocks of companies that meet this fundamental objective.
Finding Fertile Investing Ground
The the scheme funds would be invested in India principally (>50%) and in securities exchanges all over the world US, Africa, China, among others where there are opportunities. They would be invested in companies trading well below intrinsic value run by honest, exceptional managements. Frequent buying and selling would not be the norm of the partnership and likely, there might be dozen or less transactions through the year, most of the times.
Investment Categories
We believe in building and holding positions for long term (preferably 3-5 years) in companies invested, until they reach their full value. We preferably invest in nascent sectors which we understand – Power Electronics, Solar, Storage, Banking, Defence, among others. Our focus is to identify companies that have potential to become large cap companies and buy them young. Other category of investments would be in companies with exceptional economics which have structurally long runways. Some companies which have changed tactics and are at inflection points in their lifecycle due to regulations or management change or consumer behavior change are also investment targets.
Management Quality
We excessively focused on management integrity, commitment and quality. Investing mainly in India – management quality is the single most important parameter to analyze. Once, the management meets the criteria, there are other rules which the company would need to reasonably meet.