Our Philosophy

At the heart of the Investment System at Accuracap is the basic philosophy that a portfolio comprising of a bunch of high quality businesses with a “moat around their business model”, bought at a historically reasonable valuation and held for medium to long term will invariably beat the market and most other funds by a fair margin. The key is to identify such high quality stocks very objectively and scientifically, invest into them but then not fall in love with any of these businesses, howsoever attractive they might have seemed at some point. Most great business stay great but some will deteriorate. Every quarter, review the held portfolio for any possible deterioration in their business model, and exit any businesses that show clear signs of such deterioration. And keep doing this every quarter without giving credence to market sentiments or emotions. Accuracap has evolved a unique ranking algorithm that conducts extensive “Spatio-temporal” analysis of every business in their investment universe, by comparing it against every other business over space and time. This helps to narrow down the list to some very high quality businesses. Next, using the very unique “Pendulum Hypothesis”, they buy these businesses at reasonable “reasonable valuation”. And then formulate equi-weight portfolios of such businesses. The key strategy is to hold on to winning ideas and weed out losers at regular intervals based on the concept of spatial – temporal analysis (i.e. assessment of business relative to its rank within the sector, across sectors both the current point in time and over historical periods as well) with very limited scope envisaged for manual intervention.