Investment Philosophy
- Our Investment Process is as rigorous as it gets. We take ample time to carefully evaluate lucrative opportunities. It often takes weeks, even months of holistic research, due diligence and careful weighing of the risk-reward pay-off, before curating every investment idea and deciding to commit our available capital.
- Our savvy clients appreciate our cogency and meticulous approach. As Warren Buffett would say “the first rule of investment is don’t lose money. And the second rule is, don’t forget the first rule”.
- Secondly, we stand out from competing firms by our ability to plan the exit strategy of an investment early on. Most market participants often neglect this important part.
- Planning a successful entry is critical, however, it is equally as important to pre-empt euphoric peaks and exit an investment, or reduce our position, once it has achieved the targeted performance. Failure to do so is akin to planting a lush tree and neglecting to pick the fruits when the harvesting season arrives.
- At Phoenix Capital, we foster a disciplinary approach of investing without condescendence, remaining vigilant and impartial. An investor shouldn’t be emotionally attached to an investment and be prepared to exit or divest once the thesis plays out or when the market conditions turn unfavorable.
- Companies and Industries have their own cycles, markets are subject to macro trends and geopolitical movements. Phoenix Capital disciplined approach allows us to navigate market conditions and instead of suffering bear markets or excessive volatility that eat into time-value of money, we have the composure to move to greener pastures at the opportune moment and capitalize on lucrative markets, that may exist in abundance.
- We have an eye for detailing, about What should be invested – “Growth stories”, Why – “Risk-Reward pay-off”, When to enter – “Value-finds” & When to exit – “Cash the Euphoria”, as a plan which is minutely documented, prior to a transaction being initiated.
Our Competitive edge is sharpened furthermore with
The knack of pre-empting the next big move in the market
Near-perfect price forecast modeling techniques based on time motion studies, time and price cycles, and price structures that get formed in the markets on a mid to long term basis. Based on these studies making timely decisions of entering or exiting a market to make meteoric gains.
The knack of pre-empting the next big move in the market
Near-perfect price forecast modeling techniques based on time motion studies, time and price cycles, and price structures that get formed in the markets on a mid to long term basis. Based on these studies making timely decisions of entering or exiting a market to make meteoric gains.
Our investment strategies come with zero rigidities that otherwise are embedded in standalone investments, which are perpetually stuck to a static objective statement, and that being an obsolete investing style in today’s dynamic world.
The Investment Funnel
At Phoenix Capital we follow a 7-step rigorous process to filter out investing opportunities.
1.
Global Macros
Careful study of the global environment, bond yields, currency movements, geopolitical conditions and broader trends.
2.
Domestic Macros
Study the specifics of the target market, that includes interest rates, fiscal policy, market trends etc.
3.
Market Isolation
Nurturing the above 2 steps systematically, to zero-in on a specific market and asset class.
4.
Sectoral Filtering
Isolating target industries and evaluating their potential performance.
5.
Underlying
Evaluating the fundamentals of the assets and coming up with price projections of the underlying, using a set of proprietary tools.
6.
Volatility Testing
Studying Volatilities, Draw-downs and exposing targeted investment ideas through stress situations.
7.
Price-Action
Technical analysis of the price-action charts, identifying correlation with fundamental analysis and validating price projections.
Out of the tens of thousands of available options in the Indian and Global Markets, we are left with a handful that meet our stringent criteria and that fit our specific client’s profile.
In addition to this top-down analysis, our disciplined approach compels us to continuously monitor the broader economy.
As such we have a hawk’s eye on major Global Markets, events and track all of the internationally relevant indices, covering S&P 500, Dow Jones, Nasdaq, IBOV, FTSE, DAX, CAC 40, Nikkei, Hang Seng, Straits, benchmark Volatility, Bond yields, Currencies and Commodity indices, on a real-time basis. This helps us stay ahead in our decision making and remain profitable, restrict draw-downs for our clients, in varied scenarios.
Our curiosity and search for superior returns necessitates that we delve deep into company fundamentals, and thoroughly analyse historic charts as far back as 1897. Though a rarity in the industry, we frequently study academic and scientific approaches to Behavioral finance and Socionomics as well as track mood indicators to help us gauge market sentiment and predict future trends.
It is our holistic approach, both technical and “human”, that gives us that edge to better navigate unpredictable markets and make confident decisions on behalf of our clients.