Strategy

Cresana Alpha Discovery Strategy

Five pillars. Applied to every position. Not sequentially — simultaneously. Conviction requires all five. Any one failing demands more research or no position.

Universe & guardrails
  • → ~3,400 listed companies, BSE and NSE
  • → Min. 80% equity and equity-linked instruments
  • → Up to 20% money market, liquid funds, or deposits
  • → Long-only. No borrowing. No derivatives.
  • → 15–25 positions. Minimum ₹50 lakh per SEBI.
Portfolio characteristics
  • → Market-cap agnostic — opportunity drives allocation
  • → Benchmark: Nifty 50 TRI (Annexure 1, PMS Agreement)
  • → Minimum three-year investment horizon
  • → Performance reported net of fees using TWRR
  • → No exit load. Direct on-boarding available.
Performance-related information on this website is not verified by SEBI.
The investment process

Five pillars. One consistent process.

Each pillar is applied to every position — not selectively. Conviction builds when all five are satisfied.

01
Lifecycle positioning
The entry signal
  • Identify businesses at a genuine inflection point — where a measurable change is already underway
  • Capacity expansion, debt reduction, pricing power emerging, business model improving, industry cycle turning
  • Turnaround situations where the tide has shifted and a previously impaired business is recovering
  • The change must be evidenced in the numbers or traceable through primary research — not anticipated
02
Fundamental research
The work
  • Financial performance, business quality, and management track record assessed independently
  • We go deeper on fewer names in less covered territory — depth over breadth
  • Primary research: factory visits, management calls, channel checks, competitor conversations
  • In markets where institutional coverage is absent, primary research is the only genuine informational advantage
03
Catalyst identification
What surfaces the value
  • Every position has a specific re-rating trigger identified at entry — not hoped for, but traceable
  • Capacity coming online, a deleveraging threshold reached, a regulatory shift opening a new market
  • The catalyst defines the expected holding period and the exit discipline
  • If the catalyst does not materialise, we reassess the thesis. If it does and is fully priced, we exit.
04
Governance & capital discipline
The quality filter
  • Promoter integrity and capital allocation track record are evaluated before valuation, before growth
  • Related party transaction history, balance sheet conservatism, promoter shareholding and pledge position
  • Poor governance is a disqualifier regardless of how attractive the financial profile appears
  • A cheap stock with a poor promoter is not a value opportunity — it is a trap
05
Risk management
Embedded throughout
  • Not an overlay — built into every stage from first screen to exit decision
  • Position sizing reflects conviction, liquidity, and downside scenario analysis
  • We revisit the thesis continuously to challenge it, not to confirm it
  • The question at every review: is the original reason we bought this still intact?
“Conviction builds when all five are satisfied. Any one pillar failing demands discipline, not rationalisation.”
Cresana investment framework
Alignment across all five pillars builds conviction. Divergence on any one demands further research or exit discipline.
Risk Factors

Material risks investors should understand

From Clause 9 of the PMS Agreement and strategy-specific considerations:

Market riskGeneral market declines may affect portfolio value regardless of company-level performance.
Economic / policy riskChanges in government policy, interest rates, or regulation may adversely affect returns.
Liquidity riskSmall and mid-cap holdings may have limited secondary market liquidity at certain times.
Force majeure / systemic riskPandemics, natural disasters, or extraordinary events may affect markets broadly.
Delisting / market closure riskRisk of trading suspension, delisting, or market closure in extraordinary circumstances.
Default / third party riskRisk of counterparty default, custodian failure, or settlement failure.
Concentration riskA concentrated portfolio amplifies the impact of any single position's adverse movement.
Key person riskThe strategy is dependent on the continued involvement of the Principal Officer.
Thesis riskThe investment thesis may prove incorrect. A catalyst may not materialise as expected.
Legal process riskLegal proceedings may affect companies held in the portfolio.