We aim to preserve and compound our investors’ capital over long periods of time.We strive to achieve this by investing in a concentrated portfolio of high-quality companies listed globally that enjoy secular growth prospects. We believe time is our ally and we let our portfolio companies work in our favour.We leverage the time and trust afforded by our investors to unlock the power of compounding. We believe the secret of a successful long-term public market investor is to partner with long-term investors.
We invest in equities globally in a concentrated manner for the long-term. We believe that very few asset classes have the superior reinvestment and compounding capability that equities offer. This along with their unique upside /downside characteristics make it an attractive asset class.
With the right unit economics and a superior management team capable of scaling the business, an equity investment has unlimited upside i.e. can be a multi-bagger, while the downside is limited to 100%. Few asset classes have this privileged risk-reward profile.
We seek to invest in public companies worldwide with exceptional earnings growth, driven by a sustainable competitive advantage, superior financial strength and proven management teams. Investing in “best of breed” companies with secular long-term growth opportunities can help us to deliver outsized returns and minimize risk.
We believe consistent earnings growth is the primary driver of intrinsic value and long-term stock price appreciation. We focus all our intellectual power on identifying and building concentrated portfolios of companies that we believe can deliver sustainable, above-average earnings growth.
Our investment approach is currently available through segregated managed accounts (“SMA”s) as well as a Irish ICAV called Sixteen02 Global Equities UCITS Fund. Please note, UCITS Funds have to abide by certain investment restrictions and consequently the performance of the Sixteen02 Global Equities UCITS Fund may not be similar to that of the Sixteen02 SMA Strategy.
Over the years we have developed and honed a repeatable process to identify suitable candidates for our portfolio. Our investment process can be broadly summarised as follows:
We look globally and focus on companies with a market capitalisation of >$1.0bn.
We apply proprietary and time-tested financial criteria to identify quality growth companies as candidates for our portfolio.
We conduct a preliminary qualitative assessment to understand the target company’s business model and industry characteristics and re-confirm adherence to our financial metrics.
We undertake an in-depth study of the company’s business model, industry characteristics as well as carry out an intrinsic value assessment. This step involves establishing contact with the company’s management, assessing industry peers etc. Our findings are summarised in an internal memo and discussed internally.
We size the investment position to be in line with our risk control rules, conviction levels and add it to the portfolio.
We monitor the company assiduously on an ongoing basis. Should any of the below scenarios arise, we re-evaluate and consider exiting the position:– Threat to competitive advantage
Chandan has over 15 years of experience as a public equity investor, most recently as lead global equity portfolio manager at Rezayat Investments, a family investment company with a concentrated approach and long-term investment horizon. Prior to Rezayat he was a Vice President at Capital Group, a $1.4 trillion asset manager, where he invested in growth stocks across sectors and market caps in Western Europe, India, and Australia. Chandan also worked with Morgan Stanley in Investment Banking, covering Financial Institutions. He began his career at KPMG. He received his MBA from INSEAD and is also a Chartered Accountant.
Parthipan Paramsothynathan serves as a Senior Investment Analyst at Sixteen02 Global Equities and has over 12 years of industry experience. Working with Chandan Khanna, he helped in the execution of the investment strategy at Rezayat Investments. Prior to that he worked as an equity analyst at Makor Securities, Independent Global Research, and Moody’s Analytics (formerly Amba Research) and started his career at KPMG. He holds MBA from CASS Business School and is a CFA charterholder.