London-based Altavista Investment Management has launched its second fund, the Altavista Capital India Long Only Fund.
The fund, which is domiciled in Mauritius, invests in high-quality companies with attractive valuations which face short term market challenges.
It relies on a bottom-up and fundamentals driven approach and will hold around 15 positions.
“Our experience shows that over the last five years, by employing unconstrained, bottom-up individual stock selection, it is possible to outperform the market significantly. India offers an attractive opportunity for long-term investors willing to live with some volatility,” commented Arun Agarwal, managing director at Altavista Investment Management.
“We look for 3-4 compelling opportunities every year – high quality businesses/ sectors which are out of favour. We are long term investors and are willing to trade near term uncertainty for long term potential. For example, currently, despite the recent run up in the Indian markets, the pharma, telecoms and IT services sectors have lagged significantly and are trading significantly below historical multiples. Our research efforts are currently focused on these sectors,“ added Vinod Nair, managing director Altavista Investment Management.
Launched in 2007, Altavista Investment Management has around $272m (€238.5m) in assets under management.