As I reflect on my journey from Wall Street to Mumbai, and the evolution of Matsya Capital and M12 Capital, several key principles have consistently guided my investment philosophy. These principles have been shaped by my experiences at Goldman Sachs, Duquesne Capital, Pointstate Capital and the challenges and triumphs of building a world-class long-short hedge fund in India. Here are the key takeaways from my investment philosophy.
1. Think Long-Term – Fundamental Value is Paramount
At the core of my investment philosophy is a relentless focus on fundamental value. This means identifying discrepancies between a stock’s market price and its intrinsic value. Often, value appears more clearly far out into the future, which requires long-term thinking – beyond the noise of the upcoming quarter or two. My time at Duquesne Capital, under the mentorship of Stan Druckenmiller, reinforced the importance of rigorous analysis. I have learnt to uncover hidden value by delving deep not just into financial statements, industry trends, but also products, customers, competitors and management. As Peter Lynch famously said, “Behind every stock is a company. Find out what it’s doing.”
2. Be a Contrarian
There are few rewards for going with the crowd. As Howard Marks aptly put it, “To achieve superior investment results, you have to hold non-consensus views regarding value, and they have to be accurate.” I actively look to challenge the consensus view when I see complacency setting in. This is the essence of contrarian investing – seeing what others don’t. I don’t hesitate to change my mind when the facts change.
Being a contrarian doesn’t mean simply disagreeing with the market — it means developing a differentiated view built on independent research. This often involves asking uncomfortable questions, focusing on neglected or out-of-favour sectors, or identifying valuation disconnects that others are ignoring. For me, it’s about having the intellectual honesty to go against the tide — but only when the data and conviction support it.
3. Act Opportunistically
Monetizing deep research requires uncovering and acting on opportunities that are here-and-now, as well as those in the future. A discretionary long-short strategy provides me the flexibility to exploit opportunities wherever they arise. I judiciously use leverage, net length, and position concentration to enhance returns. This flexibility is crucial in navigating the dynamic and often volatile Indian equity market.
4. Welcome Volatility
I believe that avoiding volatility altogether runs the risk of producing index-hugging returns. That is not what investors should pay active hedge fund managers for. Short term volatility, within the guard rails of risk management, provides opportunities to double-down on the best ideas. I actively welcome such opportunities as I view short term volatility as an enabler of outperformance, not a threat.
5. Be Patient but Stay Resilient
Investing is a marathon, not a sprint. Patience and resilience are essential traits for both portfolio managers and investors. The Indian market can be highly volatile, and there will be periods of significant deviations in performance from market benchmarks. However, maintaining a long-term perspective and staying true to our investment thesis has been key to our success. At the same time, I do what it takes to weather the storm, knowing fully well the rewards that are to be found on the other side of any crisis.
I try to practice this philosophy every day at work as we invest through volatile markets and multiple cycles. Matsya Capital’s nearly ~ 30% CAGR (USD, after fees)* since inception in 2013, has demonstrated to me the power of this approach.
Performance Note: *Note on Matsya Capital’s performance calculations: Matsya Capital’s returns have been calculated internally from inception in August 2013 to June 2025, using daily Net Asset Values provided by Fund Accounting Services at Kotak Mahindra Bank / Nuvama Asset Services. The corpus of Matsya Capital is entirely in INR. However, USD calculations have been provided for ease of comparison. USD calculations are illustrative, internally arrived at and hence meant to be approximate. After-fees calculations are illustrative, internally arrived at and hence meant to be approximate. They assume a management fee @1.5% p.a., charged monthly, and an incentive allocation @15% of gross profits, charged annually. They also assume 0% taxes. Matsya Capital / Matsya Trust is an entirely proprietary Fund and is not registered with the Securities and Exchange Bureau of India, or any other regulatory body.
Disclaimer: This blog is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. The views expressed are those of the author and are not a guarantee of future performance. All investments carry risk, including possible loss of principal.
