US and European Clients: Currently, Dwaith Partners is open to qualified clients, who are non-Indian Global investors. The fund is incorporated in the US and will invest in public equities and certain, private companies based in India.
Indian and Indian-origin NRI/OCI Clients: Dwaith PMS is open to HNI and corporate clients of Indian origin. The PMS is based in India and will invest in Indian publicly listed equities.
Please refer to the offering documents for a comprehensive listing of the rules and legal requirements. Given below are the basic “ground rules”. They are not a substitute for the legal offering documents but can serve as a starting point for understanding the investment and management philosophy of Dwaith Funds.
1. Harsha Venkatesh is the Investment manager through Dwaith Advisory Private Limited (DAPL) DAPL will be the managing partner entity. Limited Partners and clients have no right to make investment decisions.
2. Dwaith Funds makes investments in publicly traded equities and bonds. Cash on hand is usually invested in money market funds and other short-term instruments. Private company investments may be made for the US-based fund.
3. The specific portfolio holdings of The Dwaith Funds are highly confidential and only released to the extent required by SEC/SEBI law or GAAP audits. Buffett perhaps expresses best why specific investment ideas should be kept confidential in the Berkshire Hathaway Owner’s Manual:
“Despite our policy of candor, we will discuss our activities in marketable securities only to the extent legally required. Good investment ideas are rare, valuable and subject to competitive appropriation just as good product or business acquisition ideas are.”
4. The Dwaith Funds does not employ any leverage or any sort of margin borrowing. The funds do not engage in shorting stocks or delve into any sort of futures or derivatives (put/call options etc.). The investment style can be described as unleveraged long-only focused value investing
5. The funds are highly concentrated in a few securities that the managing partner believes are undervalued. Typically 80% of assets are invested in under a dozen securities
6. Investors can redeem part or all of their interest in the respective funds once a year on 31 January with at least 60 days advance notice. Subscriptions are allowed on the 1st of every month
7. Minimum investment would be $1M (US) /Rs 2 Cr (India) and subsequent additions would need to be allowed monthly
8. There are no management or performance fees payable unless the funds achieve an annualized return greater than 6% (net to investors). ¼ of the returns above 6% is DAPL’s fee and ¾ is due to investors
The expenses paid by investors are direct third-party expenses such as audit, tax preparation, third-party administration and trading/brokerage/travel expenses.