Open Offers

Hi,

As discussed last year in the ppt on delisting, given the dwindling opportunities in Delisting space and the worsening risk-reward ratio we have been in search of other special situation opportunities.

The ppt below is an attempt to discuss another special situation opportunity "Open Offers" in detail.

We would like to emphasise that certain portfolio allocation to such special situations gives you absolute returns in a bear market as well. Also one can also shift such positions at minimal loss into long term opportunities if meanwhile market corrections present a more lucrative long term bet.

The following ppt on open offer was made this year at the ISG forum meet in Delhi, CFA Delhi Chapter meet in Delhi and then the IIF forum meet in Mumbai. We have tried to further revise the ppt as per the feedback received.

Look forward to your valuable comments and suggestions :)

Open Offers from perfectresearch

Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note.

Disclaimer

• Nothing in this article is, or should be construed as, investment advice.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog. 

Role of Management in Long Term Investing

Hi

In our investing experience so far,

in certain cases we have lost money because we didn't pay too much attention to the role which management plays in creating or destroying value.

We used to focus more on inherent cheapness and business quality. Also, since we used to end up looking more at midcaps and small caps in our pursuit for multibaggers, the issues of corporate governance used to surface more.

So in this presentation which was made at an investor forum recently, we decided to focus on the aforesaid topic and stress upon the fact that even though the business may continue to make tons of money, it is the management which will determine whether it will flow to you as a shareholder or not.

One thing which we would like to mention is that in the pursuit of high corporate governance standards, we found a lot of the small and midcap managements wanting and having some skeletons in the closet and it has been difficult to classify them as black or white as they are more like shades of grey with different degrees of darkness.

In this regard, the words of fund manager Chuck Ackre (covered in the ppt) offer some light

 

Ascertaining management integrity is “the tough question and the answer which often takes us years to discover.” One short cut Akre uses is to favor “owner operators,” which refers to managements that own a lot of company stock. The thinking is that if management’s financial interests are aligned with shareholders, they will do right by shareholders regardless of integrity. 

With this we would like to end our soliloquy and present you our presentation below.

We look forward to your comments and suggestions ...

  

Role of management in long term investments from perfectresearch

Acknowledgement

The author (Mr. Ashish Kila) would like to thank his entire team, for their extensive help in preparation of the above note.

Disclaimer

• Nothing in this article is, or should be construed as, investment advice.
• This is not an offer (or solicitation of an offer) to buy/sell the securities/instruments mentioned.
• All the posts on this blog, including this one, are for educational and discussion purposes only.
• Please do not take buy/sell or any investment decision based on articles you read on the blog. These are only meant to provide information and initiate discussion. Final decision is and always should be, yours and only yours.
• We may or may not have a position in the stocks discussed on this blog.