Equitree Capital suggests these 4 investment philosophies for growth and value creation – learn more

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Amid massive market volatility and weakness, Equitree Capital, a small- and micro-cap investment firm, outlined the four main investment philosophies, which it follows and also believes systematic investing guarantee pragmatic growth and value creation.

The company is founded by professionals with practical experience of entrepreneurship and investment in the private and public domains, they seek to adopt a pragmatic “business” approach to investing, generating outsized returns.

Below are the four key points that Equitree Capital follows and recommends as investment philosophies:

Selection of companies: They generally invest in companies whose business models we can reasonably understand. There is inherent and visible growth within the company. They typically look for companies that are on track for 20% year-over-year growth over the next few years and have a strong or improving balance sheet.

Support strong leadership teams: Clean and focused management is just as important as a good company. Equitree Capital dedicates considerable time to understanding management’s vision and priorities and supports teams who are passionate about business development.

Reasonable valuations: Equitree Capital are acutely aware of the ‘value’ they pay to ‘buy’ a business. They believe that investing in the right company at the right value is half the battle won in the quest to build wealth.

Long-term holdings: They believe in staying invested as long as growth is visible, valuation remains reasonable and there are no other structural problems with the investment.

The company invests in small and micro cap stocks with market capitalization between Rs 500 crore and 3000 crore. The investment firm prefers to invest in companies that are under-researched in the markets and under-invested by institutional investors. This allows them to capture a kind of “discovery bonus” as these companies mature and find themselves on the radar of institutional investors.


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