Videos

Special Situations, Right Issues And Tender Offers?

We are happy to present you a series of three interviews with Value Investor Gokul Raj P, which were all conducted in English. Gokul works for the Munich based firm Bavaria Industries. There he is taking care of the investment in publicly listed companies. In this episode we have talked with Gokul Raj P. about his way into Value Investing and special situation.

public equity investment
Image source: YouTube Video Screenshot

This content can be found in our video:

  • At the beginning get to know more about Gokul
  • At 01:27 we learn more about Gokul’s way into Value Investing
  • At 03:45 Gokul names some smart Indian Value Investor, that were his role models Names in description
  • At 04:50 we talk about other Value investors, that influenced him and his approach
  • At 05:50 we shortly discuss which investors he follows
  • At 06:25 we start with a deep dive in his field of research: special situations
  • At 11:45 he explains how he screens for special situations and right issues
  • At 12:20 we are taking about the risks of right issues and special situations
  • At 15:14 we shed light on further details
  • At 19:44 we talk about how the needed trading skills for handling special situations
  • At 20:39 explains how much time needed for doing special situations
  • At 21:43 we discuss a current and historial examples of special situations

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Special Situations, Right Issues and Tender Offers? Explained by Gokul Raj P.

Transcript

Hello Gokul. Welcome to our YouTube channel. Thank you very much for inviting us to Munich. And I would like to ask you at the beginning for a short introduction about yourself.

Thanks still for coming to our offices and giving me point of view. So I come from India. I currently manage the public equities portfolio but very Industries Group. It's a listed investment vehicle to USD balance sheet cash to do both private and public equity investment. So I am part of the public equity investment but so we do global public equity investments. But small limited that cabs irrespective of markets and size because we work with Berman Capital usually these are long term bids that we believe those are attractive risk reward ratio. About me personally I come from India. I've been investing in Indian markets for the last 10 12 years mostly in small and midcaps. I used to head a research boutique research team focused on smaller midcaps in India. And then I moved to London for my masters and then I'm here with my very NASD group.

It's nice to have you here in Munich. Thank you. Like how did you find your well into your way into value investing. How did you get involved with the idea and the concept.

So I think it would be it was pretty accidental so as to say that in the early 2000s probably in my school my father it was the early stages of online brokerage penetration in India and the whole internet based. My father had just opened a online brokerage account and he started investing and he's a doctor so it was he just started out investing in certain things. And as a kid I think I got interested in what's happening with stock markets how do people make money and the usual curiosity that comes with that. And then with internet it's like you have all the material out there and once the first level of reading you do on something about value investing. Then I got hooked then then then you do that you should have read everything that was value investing and then learn about people. But the big difference would also be the fact that once I started 50 boutique research firm I started working with a lot of interesting clients to whom I was giving ideas and selling ideas.

So I had the opportunity to work with some of the smartest Indian investors focusing on small and midcaps and because I'm giving them an idea and then they're predicting or selecting it. I get to learn the thought process. How do they think about investment. How do they look at it. How do their position size they told you they manage that is called to exit the stock so does literally learning from very smart people and learning by investing in the markets and being in the market so it's all most of what I've learned this by being in the market and doing in the markets rather than just read from books and stuff like that. Of course you do that but that was always in parallel to in listing assets because I think for personally learning yourself or understanding yourself is as important as understanding a stocks so for you to understand your what does your bias what is your comfort zone and so on and so forth. I think you can only learn that by investing in markets.

Can you please name some of the smart Indian investors.

Yes. So I'll probably put two names hold that which which from whom I learned a lot of things. So two of our clients saw us does a lot logic claims but yet people are bet people. I've learned a lot was an Indian investor called me idea. He's a superstar in the Indian investing so the small and mid-cap circuit and the other one wouldn't be this British capital. It's institutionalised form but probably the smartest investors in this small and mid-cap space all have had the good fortune to work and discuss ideas with both of them give them some ideas understand how they think about it and then speak with them across a different set of ideas and then learn how to think about businesses how to evaluate stocks and so on and so forth.

We will link to names in the Shona so that others can get an idea who this investors are. Sorry we will link the names in the show notes for YouTube views. What other value investors have influenced you. Said the Indian ones. OK.

Globally it will be the usual names Warren Buffett's early Monday.

Joel Greenblatt or Mark Seth Klarman and so on and so forth. So it's it's Philly D.C..