(A) Financial and accounting investigation of audited statements
(B) Historical quantitative factors and ratios
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Cash is Trash.
Hold a Global, Diversified Portfolio
Ray Dalio
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The Dynamics of
Overlooked market Investments
The combination of a rising consumer class, ongoing structural and economic reforms, and a number of well-run businesses in the region provide attractive opportunities as these economies transition from low value-added and labor-intensive manufacturing economies to ones more built on services, entrepreneurship, and consumers, but we see too few investors having exposure to these growing economies and having a global diversification of their wealth.
unparalleled
Local Expertise
AR Capital is the only global value-oriented hedge fund with direct expertise in equity investments in Bangladesh. The fund also invests in South and Southeast Asia. Now in a low interest rate environment, it is more important than ever to diversify wealth in well-run businesses through a manager who has the local expertise in capital allocation and shares the deep-rooted familiarity with the country’s culture and norms.
value of Having
Other Global Destinations
Our traditional LP-GP structure coupled with the capital movement flexibility by the jurisdiction we are based in allows us to invest your capital prudently. We cease to deploy capital as opportunities dry up in a specific market and channel the funds in other undervalued destinations. These countries include India, Japan, South Africa, Brazil, Mexico, South Korea, Australia, New Zealand, USA, and Canada. No matter what market we choose to invest in - we work with the local experts and leverage our carefully built network to identify opportunities that other investment firms often miss.
value of Making a
Positive Impact
At our firm, we believe that prudent capital allocation almost always goes hand in hand with a positive impact on society and improves the quality of life by channeling the excess capital to other productive uses. Our current and prospective investors should know that we are NOT willing to own businesses that are primarily focused on intoxicants, gambling parlors (such as - marijuana, tobaccos, liquors, casinos, sports betting houses, etc.), even if it means giving up a percentage point or two in investment performance - as they contradict to our core value system in a major way.
OUR FUNDAMENTALLY SOUND
Bottom-Up Investment Process
Our investment approach is based on the concept of ‘via-negativa’, i.e. finding a risk of magnitude and / or important unknowable in order to discard the idea as early as possible. The survived ideas are then analyzed, scrutinized, and investigated through business owners’ lenses and further filtered down to only a handful of picks where the conviction is better than the other available investment universe. We then put them through a rigorously collected investment checklist that protects us from psychological biases and avoids blind spots. Those that survive all of these filters usually deserve a position in the portfolio and sometimes get a gradually built - significant one.
(A) Competitive advantage (MOAT) analysis
(B) Corporate governance
(C) Secular vs. cyclical movements in the industry and other business / consumption trends
(D) Alignment of management’s interest
(B) Corporate governance
(C) Secular vs. cyclical movements in the industry and other business / consumption trends
(D) Alignment of management’s interest
(A) Cross-synchronization to detect psychological biases and blind spots
(B) Historical precedence of permanent loss of capital by great investors
(C) Mental models from other important disciplines to analyze complex but analogues situations
(B) Historical precedence of permanent loss of capital by great investors
(C) Mental models from other important disciplines to analyze complex but analogues situations
(A) Currency fluctuation
(B) Demand and spending
(C) BoP and reserve
(D) Monetary and fiscal policies
(B) Demand and spending
(C) BoP and reserve
(D) Monetary and fiscal policies
We put an emphasis on finding companies that are earning free cash flow in excess of a realistic cost of capital of the firm. The concepts of competitive advantage (‘MOAT’ in Buffett’s term) and margin of safety are always at the center core of all investment decisions made by us. We believe that our risk-averse investment portfolio should realize long-term compounded annual rates of return than those available from the average investor’s general experience in securities.
case studies
10 Years of Wealth Creation
Well-governed and capitalized public companies in Bangladesh have created massive wealth just in the last 10 years.
What percentage of your personal and family wealth has a direct exposure in Bangladeshi equities and the fastest growing economies in the world?
