Invasset LLP’s Growth Pro Max PMS strategy generated robust alpha for high net-worth individuals (HNI) in the financial year 2023-24 (FY24). The multi-cap scheme gained 128.47%, while the benchmark BSE 500 TRI index rallied 40.16% during the same period. In an interaction with Business Today, Anirudh Garg, Partner and Fund Manager at Invasset, said they follow four distinct styles of investments that are coded into the Invasset AAID (Advanced Algorithm for Investment Decisions) model to cater to dynamic market conditions. This is called the Invasset AAID shifter, which helps them with step-by-step guidance to check if the market is pivoting so that they can proactively make prudent decisions for their valued investors.
Firstly, they zero in on deep discount sales or value investing. Garg explained that in this approach, they seek out industry leaders who have been unduly affected by market downturns, causing their stock prices to fall below their intrinsic value. “Drawing inspiration from the methodology pioneered by Benjamin Graham, we aim to purchase these stocks at a bargain and sell them when their value surpasses the market’s assessment,” he said.
It is followed by growth investing. Garg added that when market momentum is strong and a clear long-term trend emerges, they focus on identifying companies that have recently experienced favourable tailwinds. By pinpointing these trend-setting companies, Invasset anticipates their potential to lead the market for the next 12–18 months, capitalising on their growth trajectory.
Quality investing comes next on the list. “This is the current stage we are in. Recognising scenarios where the market’s risk-reward ratio may be unfavourable, we shift our attention to exceptional companies capable of sustaining growth regardless of prevailing market conditions. Our strategy revolves around identifying and investing in these shining stars, emphasising quality and resilience in uncertain environments,” he said, adding that in times of market exuberance and unsustainable levels reminiscent of a bubble, they prioritise the protection of investor capital through hedged portfolios.
“By adopting a defensive stance, we aim to shield against downside risks and navigate through volatile market phases with a focus on capital preservation,” he said.
Sharing his views on broader markets, Garg added that mid-caps and small-caps may seem expensive for those focused on short-term gains. “We believe they offer substantial value for the next 2 to 3 years. Our investment strategy is based on the ability to identify undervalued companies with the potential for significant growth, effectively turning “companies from the dust into diamonds.” This approach has proven successful over the years, and we anticipate the continuation of this trend, albeit with a focus on different sectors,” he said.
Of late, they shifted more than 90% of their clients’ positions into large caps between January and February 2024. “This decision is based on our analysis and understanding of market dynamics, ensuring that our investments are well-positioned for both current and future market phases. Our commitment to identifying and capitalising on opportunities across market caps, with a keen eye on long-term value, underscores our dedication to achieving superior returns for our clients,” he said.