Cedrus Hidden Gems- Equity Market

Cedrus Hidden Gems

OUR OBJECTIVE

To offer investors a well-designed and well-researched microcap equity portfolio with potential of creating a substantial alpha over long term. This entails a concentrated portfolio of 5-7 lesser-known microcaps with unique growth capabilities available at discounted valuations.

INVESTMENT APPROACH

Pseudo private equity type of companies with small paid-up capital.
Illiquid stocks with low institutional interest.
Turnaround stories or are niche players in a particular segment.
Companies with increasing promoter stake.
Exit when institutional interest develops or there is a possibility of delisting.

OUR PRINCIPLE

UNIQUE SOLUTION: At Cedrus we believe in offering niche solutions to our investors and this advisory offering is unique as the illiquid equity space has tremendous potential but lacks large investor interest. This untapped market provides an opportunity for investors looking to diversify in the equity space.

CORPORATE GOVERNANCE: We believe in picking stocks that are relatively unknown, with an interesting story, low debt, and attractive valuations. Additionally, the companies should be well managed and have a strong Corporate Governance framework in place.

UNDISCOVERED GEMS: Currently, shares of Bluechip companies trade at multiple times their fair value. Hence, it is important to identify companies with the potential to follow a similar growth trajectory and invest in them while they are largely undiscovered, creating attractive growth opportunities.

WHO SHOULD INVEST

This niche product would be suitable for existing equity investors with a higher risk appetite. Investors looking to diversify through the microcap space with a Long-term horizon (above 10 years) would benefit.