Objective – The investment focus is on growth-oriented enterprises in certain areas that are driving market share migration from unorganized to organized players. Several sectors are poised to alter substantially over the next decade as India’s economy increases in scope and complexity. A number of significant factors are causing a shift in the competitive advantage balance in favor of organized firms

Investment Approach – Unorganized enterprises make up a large sector of India’s economy, accounting for around 35 percent of the country’s GDP. Over the next decade, as the economy increases from $ 2.6 trillion to $ 5 trillion, it will face social, technological, scale, legal, tax, and regulatory challenges. These developments are expected to put unorganized companies in certain industries’ present business strategies to the test. As a result, well-established organized firms in such areas would gain market share while boosting margins, potentially resulting in extremely high profits growth. The BC-AD fund was designed to profit from the impending transfer of market share from unorganized to organized players. The fund would put its money into well-known, well-organized players who would be gaining ground. Unorganized players have taken market share from organized players, resulting in a greater revenue growth rate than their sector. Over the next decade, their significant topline growth, combined with the benefits of operating leverage, could help them achieve a better profits trajectory.

Focus on identifying unusual investment opportunities frequently resulting in greater (risk-adjusted) returns while appropriately emphasizing capital protection.

Advisory Team

14 professionals make up the core team, which is headed by K Sarath Reddy, an expert in the Indian capital markets.

Portfolio Risk Controls

Evaluations of marketable liquidity, exposure restrictions, and in-depth stock analyses are included in the framework for comprehensive risk management. Sophisticated risk monitoring systems that consider daily MTM and liquidity assessments together with in-the-moment monitoring of company operations and performance.

Ongoing Surveillance

Daily Mark-to-Market review, including a careful examination of significant changes. Portfolio firm management should be called or met quarterly to discuss progress, analyze results, and revalidate assumptions while carefully monitoring business communications in real-time to stock exchanges and industry- and company-specific news in the media.

Firm Infrastructure

High-end IT infrastructure with backup Daily MIS to clients, a private online access facility, and separate reporting lines for operations, fund management, and risk monitoring. Access premium datasets for research document economic, industry, and company developments. Three independent audits are carried out: a statutory audit, an accounts-specific audit, and an internal audit by K.S. Jagannathan & Co. (Walker Chandiok & Co.). After their yearly audit, the PMS auditors send an audited account to each account holder.

Why Unifi?

Since its inception in 2001, Unifi has specialized in niche and boutique themes and sectors. Such themes appear contrarian in the beginning but have done well as demonstrated by the exceptional returns earned, both in absolute and relative terms.

At Unifi, we have a few unique strengths:

• The relatively smaller size helps us focus on niche areas of the market wherein ‘Institutional’ type of capital can’t be deployed,
• A strong research team that believes in primary research and doesn’t hesitate to initiate research into companies/sectors that lack analyst coverage and/or are prone to information asymmetry,
• The direct engagement with each of The investors at regular intervals enables us to pursue strategies that are not benchmarked with major stock indices,
• The alignment of the interest model of commercials brings clarity on absolute return targets as well as long-term outlook in returns measurement.

What would impact BC AD performance case if Government regulation changes on taxation, GST, etc.?

Despite the fact that The study effort, which finally resulted in this subject, started with the introduction of the GST, neither the GST nor government rules are the main emphasis of this theme. Demography, urbanization, technology, international environmental compliances, and other factors are highlighted as consolidation drivers on page 2. Government tax restrictions are one of the factors that contribute to sector-wide consolidation, but they are not the only ones. 

In India, a number of companies have merged in the previous 20 to 30 years without reference to the GST or any other legislative reforms. Consequently, the value of this topic is unlikely to be affected by a change in the administration or policy. Based on a small sample size in this context, I can say that since liberalization in 1991, none of the new administrations have undone vitally essential previous government programs (like the GST), notwithstanding the concerns of the markets.