"Leadership is not about power or privilege; it's about service and sacrifice for the greater good.” - R. Venkataraman
While it may seem blasphemous to quote the 8th President of India (who was also an old client) to explain what our fund stands for, leadership in itself has had misconstrued connotations throughout world history.
Hence, we’ve curated the Paterson Leadership Fund as an ode to what we aspire for leadership to emulate while ensuring that this leadership results in your money moving in multiples!
What’s in a Name?
The Paterson Leadership Fund, as the name suggests, invests in companies that obliterate competition in their fields, even claiming the title of being monopolistic!
With the Indian markets giving us over 7,000 varied stocks to choose from, having this layer of filtration allows us to focus on an elite group of 20 stocks that meet our standards.
The logic is simple:
✅ Select fundamentally strong leaders in growing industries with minimal threat to their position
✅ Ensure that this leadership is a going-and-growing concern
✅ Check if the company has a long-term story that is backed by strong earnings and a near-term trigger event that could catapult its stock by multiples
✅ Invest when valuations look most attractive
✅ Rebalance either when valuations and/or leadership positions look unattractive
While this does look straightforward, the research that goes behind finding these companies, digging deep into their storylines and numbers, and finally making the decision to invest, is time-consuming and arduous.
Yet, if we had to boil it down to a few key metrics without which they don’t pass the Paterson Leadership Fund checklist, they would be:
Coupled with checking for red flags like too much debt and shady corporate governance, the companies can finally make it into the exclusive and elite Paterson Leadership Fund!
Brass Tacks
While all of that sounds great in theory, it is only fair that we provide a few examples as to what we mean when we talk about the Paterson Leadership Fund’s stringent methodology.
Therefore, we present it to you in action!
The companies you see above are a true testament to leadership, whether it is Asian Paints’ enormous legacy of innovation in paints, SRF’s global dominance in chemicals, or Pidilite’s landmark product becoming synonymous with glue.
Each of these companies has had a wonderful story that moulded into leadership over decades, followed by rock-solid numbers that stood the test of time, resulting in Asian Paints giving investors a 4x return, SRF’s investors a 10x return and Pidilite’s investors a 5x return within 5-7 years - if this isn’t leadership, we don’t know what is!
Just as R. Venkataraman said, these companies paved the way in their respective industries by serving the consumer and sacrificing immensely to ensure that the greater good is achieved - and that is exactly what the Paterson Leadership Fund is all about.
Fund Leader
The brain behind this operation is none other than Mr Mehul Parikh.
Mehul is a CA with more than 11 years of experience in finance and investing. He is a partner at M91 Ventures, a boutique investment advisory firm.
He has also worked in the strategy and M&A team at Mahindra Group and in institutional research at Motilal Oswal. Managed the Monopolies smallcase at Rupeeting, which has a 2-year CAGR of 18%
If backing the leaders of today and tomorrow is where you would like to place your money, then reach out to the Paterson PMS and let us create wealth in multiples together!
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