Terra Capital Investment Process

TERRA CAPITAL INVESTMENT PROCESS 

Terra Capital focuses on investments in small companies that offer risk adjusted exposure to high levels of capital appreciation. In addition the investment process allows the Fund to seek out undervalued mid-cap companies, to enhance both return as well as liquidity.

Process

The portfolio will be composed of individual companies that have each been carefully selected through a rigorous research process. This investment process will be as follows:

Idea Generation

  • Internal idea generation based on macro-economic outlook, sector comparisons and a quantitative screening process.
  • External idea generation from network of promoter and broker contacts, corporate road shows, and industry conferences.

Analysis

  • Detailed financial modelling
  • Absolute and relative valuation
  • Sensitivity analysis
  • Company/Management visitation
  • Independent analysis
  • Market sentiment analysis

Portfolio Construction

  • Attractive financings
  • Cheap valuations
  • Core portfolio of 10 – 20 stocks when fully invested
  • Construction also based on liquidity considerations

 Ongoing Monitoring 

  • Active management of portfolio
  • Relatively low turnover of stocks
  • Dialogue with management of invested companies
  • Liquidity analysis