2 Point 2 Capital - Long Term Value Fund
Introduction
2Point2 Capital is an investment firm that focuses on taking concentrated bets for the long term in high quality publicly listed Indian companies at reasonable valuations. As investment managers, our primary goal is to protect capital followed by our goal to generate returns that exceed the equity index return over the long term.
2Point2 was co-founded by Amit Mantri and Savi Jain in 2015. They have a combined investing experience of more than 29 years, primarily in the private equity and hedge fund industry.
2Point2 Capital manages ⁓1200 crores in AUM across 600+ clients.
2Point2 is registered as a Portfolio Management Services (PMS) provider (vide registration number INP000005190) with SEBI. Investors have the option to invest directly with us without an intermediary.
Background
- 15 years of investing experience, 6 years in private equity
- B.Tech IIT Kharagpur; CFA® charter holder
- Was Associate Director at Tano Capital, prominent Mumbai based
- PE fund that manages assets worth USD 210 million
- Investment experience across varied sectors and across Private Equity and Public Markets both
- 14 years of investing experience in private equity and hedge fund
- B.Tech IIT Kharagpur, MBA IIM Bangalore, CFA® charterholder
- Was Vice-President at Hornbill Capital, a Mumbai based hedge fund -- co-sponsored by Orchid Asia which manages USD 3.0 billion of equity capital
- Made investments in Logistics, Pharma, Financial Services, IT and Clean-Tech at Zephyr Peacock, a Bangalore based PE fund
Robust Investment Philosophy
- Long Term Value Investing: Ignore short term price movements
- Protect Capital: Focus on margin of safety | When in doubt, stay in cash
- Buy the Business, Not the Stock
- Circle of Competence: Only buy what you understand better than others.
- Strict Investment Criteria: Corporate Governance | Value-Creating Sectors | Competitive Moat | Margin of Safety
The “2Point2” Edge
- Pedigree: IIT / IIM / CFA / Hedge Fund and Private Equity experience in Global Institutions
- Aligned Interests: Low fixed fees; Focus on profit sharing; Significant own capital invested in same portfolio (∼50 crores)
- Sound Investment Philosophy: Value investing principle of buying with a margin of safety.
- Private Equity Approach: Concentrated portfolio – No unnecessary diversification; PE like rigorous diligence process in making investments.
- Track Record: Delivered strong returns beating BSE 500 and leading mutual funds by wide margin
- Superior Knowledge and Network: Idea generation and validation from a network of PE funds,mutual funds, brokerages and industry experts
Investment Strategy
- Concentrated Portfolio: Maximum of 15-18 businesses | Maximum allocation is 10% at cost
- Market Cap Agnostic: Wherever there is value | Current portfolio bent towards mid / small cap
- Sector Agnostic: We avoid Real Estate / Commodity / Core Infra
- Single Portfolio: 2Point2 Long Term Value is our only portfolio/scheme | No plans to add new schemes.
Process Edge – On-Ground Research & Forensic Analysis
On-Ground Research:
- Spend 4 to 6 months on micro-analysis and on-ground research before investing
- Low reliance on company reported financials/metrics and management forecasts
- Extensive channel checks and third party validation of business and management quality
Forensic Analysis:
- Extensive forensic diligence using proprietary checklist to weed out companies with questionable financials
- Leads to better understanding of sustainable profitability
Track Record – 2Point2 Long Term Value Fund
- In July 2016, launched the 2Point2 Long Term Value Fund. This strategy focuses on generating long term returns by holding a concentrated portfolio of investments.
- As on 31st March, 92.3% of the total capital was deployed in equities with the rest lying in liquid funds. The portfolio returns are:
All returns are net of expenses and fees and are on a pre-tax basis. These are aggregate portfolio returns i.e. actual returns of all investors combined; These are NOT Model Portfolio returns. We have ONLY one Fund and there is no selective highlighting of the returns of only the best performing / surviving fund. “Link to performance relative to other portfolio managers” - https://tinyurl.com/549h8kb6
Marquee Clients – Representative List
- Board Member of one of India’s largest Agrochemicals Companies
- CEO of one of the largest microfinance NBFCs in India
- CEO of a prominent online Real Estate portal
- A prominent Film-maker
- Founder of one of the largest ice cream brands in India
- Promoter of one of the largest Adhesive companies in India
- Co-Founder of leading HealthTech Unicorn
- Partners of 3 of the largest Venture Capital funds in India
Media Coverage
https://www.youtube.com/watch?v=iUAV21ouJ2g
