INVESTMENT PROCESS

Our Motto: Value Investing

“Value investing is the discipline of buying stocks at a significant discount from their current underlying values. The element of a bargain is the key to the process.”
– Seth Klarman

Kotak PMS, registered with SEBI, is one of the largest Portfolio Management Service providers in the country today. Our approach can best be summarized as making concentrated investments in well-managed, high quality companies that are purchased at significant discounts to their intrinsic values. Like any investment style, such stocks can be out of favour and trail broad benchmarks for a period of time. We make such bets because we are confident that this approach leads to superior investment returns over the long term.

Equity Investments always carry short-term market risk, and it is a folly to believe that this can be completely eliminated through diversification or other means. We believe, however, that by thoroughly assessing and analysing each company held in our portfolios, business risk can be minimized. If the investment is then made at a substantial discount to intrinsic value, then chances of permanent capital loss are minimal. Further, this strategy offers the substantial upside available between Price and Intrinsic Value. The differential between Price and Value was termed as Margin of Safety by the father of Value Investing – Benjamin Graham. This concept is our guiding light.