INSIDER SHADOW STRATEGY

Insider Shadow Strategy seeks to generate superior risk adjusted returns relative to the broad market by investing in fundamentally sound companies where promoters or controlling shareholders have increased their stake through open market purchases, rights issues participation, voluntary open offers or company share buybacks executed at market prices. The core premise is that promoters possess the most updated information about business prospects, industry cycles and value of their companies and their decision to acquire additional shares reflects conviction that the prevailing market price does not fully capture intrinsic value or future growth potential. The strategy identifies such opportunities through continuous screening of disclosures made by promoters, executives or companies under relevant SEBI regulations regarding share purchases and stake increases. From this universe, companies are selected through bottom up research focusing on business fundamentals, governance standards and long term growth prospects. The approach aims to benefit from eventual convergence between value and price as the market recognizes improving fundamentals. The portfolio typically remains diversified across about fifteen to twenty companies to capture opportunities emerging from promoter stake increase activities across sectors. The strategy generally focuses on under tracked and under researched companies where promoter buying signals valuation attractiveness. Sector agnostic. Market cap agnostic, though majority of opportunities typically arise in small and mid cap companies.