A Market Crushing Focused Value Fund Is Warning About A Startup Bubble (In India)

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A Market Crushing Focused Value Fund Is Warning About A Startup Bubble (In India)
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Surefin India Value Fund was up 5.5% for the March quarter, capping its full-year return at 0.5% for the year ending on March 31. In the fund’s annual report dated Aug. 27, Portfolio Manager Amitabh Singhi described the performance as “unsatisfactory,” adding that their returns were “terrible when compared to the main indices.” The best main index was up 16.9% for the year, while the BSE mid-cap index in India is down 3% and the small-cap index is down 11.6%.

Since inception in May 2001 the hedge fund has returned 3861.4 compared to 977.6 for the Sensex, 910.2 for the NIFTY and only 253.1 for the S&P 500.

The ideal investment

Singhi didn’t name any of the companies the fund invested in. He said Surefin’s biggest position declined during the year, although they continue to believe the company is an ideal investment. He defines an ideal investment as a company that “makes a high return on invested capital and is also able to redeploy most of that capital at high returns in the business itself year-on-year.”

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