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UNIFI Capital Rangoli Blend

About Company

Unifi was founded in 2001 as a specialist Portfolio Management firm that provides new investing methods with better risk-adjusted returns. Unifi’s core staff has an average of 20 years of capital market expertise.

At Unifi, we are always focusing on Relationships and providing tailored services to each of our clients. Each fund has continuously outperformed its benchmarks during Unifi’s exceptional twenty-year success record. Unifi’s commitment to its clients is a strong in-house research team and excellent levels of service accompanied by relationship continuity.

Fund Snapshot

Year of Inception 18
Number of Stocks A blend of 7 themes
Investment Horizon Long Term
Fund Managers Investment team headed by Sarath K Reddy
 

About UNIFI

Close benchmarking and index orientation dictate investor behavior as Indian markets grow more institutionalized, polarizing research coverage and capital flows. Unifi focuses on making investments in undervalued possibilities that traditional banks sometimes overlook. The company has become skilled in identifying value using specific themes as filters over the last 19 years. We can maintain our commitment to our concentration on comparatively less liquid enterprises by capping the amount of money we take under each topic. Our normal investing horizon is five years, and it is backed by intensive research coverage. 

Businesses must be able to expand their earnings somewhat consistently, be capital efficient, utilize little to no debt, and, most significantly, be well-run. Unifi employs absolute metrics of value. Chennai-based Unifi provides services to around 5000 local and international Indian clients through its regional offices. We oversee over 11,000 CRs. The Securities and Exchange Board of India oversees our activities. Our 82-member team is united by their love of working in markets, commitment to rigorous education, and lengthy employment with the company. The 14-person research team is very skilled and knowledgeable. On potential investments, we typically do our primary due diligence. 

As a specialized portfolio management company offering cutting-edge investing strategies with superior risk-adjusted returns, Unifi was established in 2001. The core team of Unifi has, on average, 20 years of experience in the capital markets. At Unifi, we always prioritize relationships and give each of our clients customized services. Throughout Unifi’s outstanding twenty-year track record of accomplishment, each fund has consistently beaten its respective benchmarks. Strong internal research teams, top-notch customer support, and ongoing relationships are all part of Unifi’s dedication to its clients.

 

Unique Feature

The Blended-Rangoli Fund handpicks the top investment possibilities from Unifi’s seven themed funds. The goal is to take advantage of chances that present themselves as a result of a combination of emerging topics, business initiatives, and the allure of basic principles. The fund aspires to prosper across market cycles and reduces the cost and work required by investors to transfer between different funds over time.

It needs a mental model that goes beyond the apparent to create value. It takes a diligent mindset to go through mountains of data and take in just the pertinent information to find chances that provide value. This may be metaphorically compared to looking for a proverbial needle in a haystack. The finest prospects within the following topics will be chosen as part of this fund’s investing strategy.

Spin-Off

The value of the individual pieces is frequently less than the value of the total in a single corporate structure with several enterprises. A de-merger of unrelated companies releases the financial and managerial resources needed for each company to expand. The spin-off fund makes investments in circumstances where there is a strong opportunity for firms to flourish to their full potential and command a fair market value.

DVD

Few market categories typically have mispriced equities while having clear growth prospects, which causes such stocks to trade at a significant discount to their real worth. The absence of linkage to benchmark indexes, low relative market value, and liquidity, and most analysts’ poor grasp of a company are a few possible causes. DVD invests in these companies and takes advantage of market imperfections.

Holdco

Instead of operating as strategic investment firms, many holding businesses operate as group holding firms. As a result, their valuations are perpetually discounted. However, these discounts are not constant. The Holdco Fund finds companies with solid fundamentals and searches for enormous valuation discounts that are anticipated to recover when promoters experience the heat of regulatory landscape change while profiting from value convergence in an expanding market.

APJ20

Markets frequently favor a few industries that have performed well in the past while neglecting the others. Some of the less recognized industries, such as specialty chemicals, agriculture, and precision manufacturing, have become internationally competitive and have access to growing market opportunities. APJ20 invests in developed and well-positioned businesses to gain from such growth opportunities.

Green Fund

The green fund’s investments are concentrated in businesses that offer goods and services that lessen their environmental impact and/or make better use of natural resources. Emission control, energy efficiency, water management, and waste management have been designated as the areas that will make up the portfolio within the context of this plan.

Insider Shadow Fund (ISF)

The Insider Shadow Fund makes investments in businesses where the founders have purchased substantial extra shares at market rates. Such an activity reveals their belief in a company’s potential for development or intrinsic worth that isn’t yet reflected in the stock price. The idea is to comprehend and support the founder’s view of value and profit from the market’s ultimate balancing of the value-price mismatch.

BCAD

The investment focus is on well-established firms in certain industries that are driving market share shifts from unorganized to organized firms. Several industries are poised to undergo significant transformation over the coming ten years as India’s economy expands quickly in both scope and sophistication. The balance of competitive advantage is shifting in favor of organized enterprises as a result of several strong trends.

Universe

The investment universe of the fund would at any one moment contain the many investment options available within the following funds: SPIN-OFF, DVD, HOLDCO, APJ20, Green Fund, Insider Shadow Fund, and BCAD.

The majority of the fund’s investments will be made in small and midcap companies, where it is challenging for “institutional” capital to invest and where Unifi’s comparatively smaller size enables us to concentrate on specialized markets.

Investment Approach

Enterprises from each of them. The goal is to take advantage of possibilities that occur from a combination of emerging topics, business activities, and the appeal of core foundations. The fund aspires to flourish through market cycles by reducing the expenses and effort required by investors to migrate between different funds over time. Creating value needs a mental model that goes beyond the apparent.

It needs a methodical mentality capable of sifting through mountains of data and assimilating just the information that is important to discovering value-adding possibilities. This may be compared to looking for a needle in a haystack metaphorically. This fund’s investing strategy will aim to select the greatest prospects from among the available options themes. Objective – Unifi Capital oversees seven bottom-up equity strategies that search through possibilities throughout the market spectrum.

The mission of all of the funds is to invest in opportunities that result from a combination of emerging topics, corporate activities, and, of course, the attractiveness of fundamentals. From an absolute standpoint, all of the funds under management have the same goal: to provide better risk-adjusted returns.

 

Objective

Unifi Capital oversees seven bottom-up equity strategies that search through possibilities throughout the market spectrum. The mission of all of the funds is to invest in opportunities that result from a combination of emerging topics, corporate activities, and, of course, the attractiveness of fundamentals. From an absolute standpoint, all of the funds under management have the same goal: to provide better risk-adjusted returns.

 

Investment Philosophy

The seven themes used by Rangoli Blend UNIFI are as follows: 

  1. Business Consolidations after Disruptions (BCAD) 
  2. Insider Shadow Fund
  3. Deep Value Discount (DVD)
  4. Holdco Fund
  5. Spin-off fund
  6. APJ20
  7. Green Fund
 

Capital Allocation

Allocated Category Allocation Percentage
Large Cap 35%
Mid Cap 32%
Small Cap 33%
 

Top 5 Stock Holdings

Name of The Stock Allocation Percentage
Axis Bank Ltd. 13.25%
State Bank of India 10.78%
Crompton Greaves Consumer Electricals Ltd. 7.31%
Sonata Software Ltd. 6.95%
ICICI Securities Ltd. 6.61%
 

Top 5 Allocated Sectors

Sector Name Allocation Percentage
Financials 28%
Consumption 17%
IT – Software 10%
Chemicals 9.5%
Healthcare & Pharma 9%