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Finance

Counter Cyclical Investments Diversified Long Term Value

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About Us

  • Counter-Cyclical Investments is Portfolio Management Service Provider, registered with SEBI vide Registration number INP000006554.
  • We invest in small companies to generate big returns.
  • Our expertise lies in spotting, evaluating & investing in promising small capitalization companies.
  • Our experience has shown that a diversified portfolio of such small caps, with strong growth prospects, honest & competent management, bought at a significant discount to intrinsic value, held patiently & tracked constantly for changes in business fundamentals, generates market- beating returns over long periods of time.
  • Over the years, our team has interacted with hundreds of management/promoters, which has enabled us to develop an in-depth understanding of their business, prospects & corporate governance.
  • We are probably the only PMS which does not charge any upfront management fee from our investors. We only charge the performance fee after our investors make over 10% returns p.a. on their investment.
  • Honestly & forthrightness is our policy.

Investment Philosophy

  • We want to invest in companies with the following characteristics:
  • Average Business @ deep discount or above average business @ moderate discount.
  • Small companies with big market shares in niche sectors.
  • Strong companies in cyclical downturn.
  • EV/EBITDA < 5x & EV/OCF < 10x *[EV = Enterprise Value, EBITDA = Earnings before Interest, Tax, Depreciation & Amortisation ,OCF = Operating Cash Flow]
  • Companies operating at low capacity utilization with strong orders expected to ramp up in the near future.
  • Strong promoter track record of delivery & smart capital allocation.
  • We generally stay away from Financials, Real Estate, Gems & Jewellery & Technology.
  • Business insulated from technological disruption.
  • Business with high value addition.
  • Companies with very low or negative EV due to cash, investments or surplus real estate. Track record of volume & unit realization growth without debt and equity dilution.
  • Companies operating at low or negative Working Capital.
  • We avoid companies in tender business or where the company is unable to pass on increases in input prices to its customers.
  • Businesses with low CAPEX requirements.
  • Thinly traded counters with low volumes.
  • Cos. doing regular share buybacks (which provides insurance in a bear market as the company would be able to take advantage of lower share price by extinguishing more shares via buyback thereby reducing share capital & increasing EPS permanently.)
  • Cos. with change in management leading to improvement in efficiency & corporate governance.
  • Unpopular, hated, hopeless, tainted (unfairly) cos.
  • We generally avoid cos. with fixed price contracts or annual price reduction contracts with customers.

Performance

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  • Best performing fund for 3 years ending March 2024 with 58.95% CAGR.
  • Amongst top 10 performing funds for 12 month period ending March 2024 with 53.73% returns.

Team

KESHAV GARG (Director):
  • He is alumni of Fergusson College, Pune having experience of over a decade in the equity markets.
  • He has in-depth knowledge of small-cap companies and has personally met with the management of hundreds of companies to date.
  • He is responsible for the day-to-day operations of the company.
GUNIT SINGH NARANG (Principal officer):
  • MA Economics from Delhi School of Economics (DSE)
  • NISM certified
  • Half decade experience in credit risk management & market research at American Express & Wells Fargo.
CA MAYUR SHRIKANT DESHPANDE (Advisor):
  • Member of Institute of Chartered Accountants Of India.
  • He has 11+ years of experience in corporate finance, fundraising & capital Markets.
  • He was a vital member of investment banking division of ICICI Bank proprietor desk and credit research team in CRISIL in International Banking Sector.
MOHIT RATHI (Senior analyst):
  • M.Sc. Wealth Management, Singapore Management University BA (Hons) Economics, Hindu College, Delhi University.
  • Possesses in depth knowledge & experience in industrial processes & financial markets.

Fee Structure

  • Fixed Fee & Charges: NIL
  • No enrolling/ fixed fee
  • Performance Fee:
  • 0% on returns up till 10% p.a.
  • 20% of returns in excess of 10% p.a.

To simplify

  • Mr Kabir decides to invest INR 1 Crore with CCI
  • He has to pay a fixed fee of INR 0 upon enrolling
  • After 1 year, Kabir earns a return of 25% on his initial investment
  • His portfolio is worth INR 1.25 Crore
  • Mr Kabir is not charged any fee on his earnings of INR 10 lakhs (10% return is exempt of any fee)
  • On earnings above INR 10 lakhs (10% return) i.e. INR
  • 15 lakh (INR 25 lakh – INR 10 lakh), he is charged a performance fee of 20% on earnings i.e. 20% of 15 lakhs which is 3 Lakhs
  • Total earnings of Mr Kabir after 1 year is 22 lakhs!

Fee Structure Example

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