Concentrated bets

When I’ve looked at all the investors (that) have very large reputations — Warren Buffett, Carl Icahn, George Soros — they all only have one thing in common. And it’s the exact opposite of what they teach in a business school. It is to make large concentrated bets where they have a lot of conviction.

Stanley Druckenmiller

We believe in making high-conviction bets where our process demonstrates asymmetrically higher reward per unit of risk taken

Top holdings (SEP-25)

Top # stock	Holding value
Top holding	12.1
Top 3 holdings	36.0
Top 5 holdings	55.5

Unlike the popularly accepted notion that diversification drives risk, our belief is that the quality of portfolio companies drives risk rather than the quantity of companies in a portfolio. In fact, our view is that building concentrated portfolios reduces risk as the fund manager’s focus is on relatively lesser positions and hence can react better relative to other market participants when the story changes. For details on our framework for selecting companies, please click here

What we do

Bottom-up stock picking
High conviction bets
Investments in focused sectors

What we don’t

Benchmark hugging
Under-weight/overweight
Broad-brush representation across sectors

Concentrated portfolios ≠ higher volatility

Since inception, our portfolio’s volatility (having <15 companies) is not significantly different from our benchmark that has 500+ companies as shown below

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The table compares the performance of the Unicorn Portfolio with the BSE S&P 500 TRI benchmark from the portfolio’s inception on March 23, 2021, through June 30, 2026. The Unicorn Portfolio, comprising 16 companies, delivered a 21.5% annualized return, outperforming the benchmark’s 13.5% return by 8 percentage points. While the portfolio experienced slightly higher volatility (17.6% vs. 14.1%) and downside risk (10.7% vs. 9.2%), it achieved stronger risk-adjusted performance, with a Sortino Ratio of 1.3 and a Sharpe Ratio of 0.7, compared with the benchmark’s 0.8 and 0.5, respectively. Overall, the Unicorn Portfolio generated higher returns while maintaining favorable risk-adjusted performance relative to the benchmark.

In a volatile CY2022, our drawdowns were lesser than headline indices while bounce-backs were stronger