Prudent Equity

Prudent Equity follows a bottom-up value investing approach to identify companies trading significantly below their intrinsic value, thus providing substantial upside potential with limited downside risk. Although the firm's core principle remains towards capital protection, the strategy has proved to deliver outsized gains. The firm's approach puts emphasis on company specific strengths such as its overall financial strength, management that displays sharing wealth with minority and sensible capital allocation. The firm looks for companies growing at high rates, run by ethical management that treats the minority at par, with a business ability to generate returns far above Weighted Average Cost of Capital (WACC). It buys at a significant discount to intrinsic value and favours management demonstrating prudent capital allocation over the years. Highly leveraged companies, frequent equity dilution etc are some of the traits which are avoided.