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About RW Investment Advisors

RW investment advisors LLP is a SEBI Registered Investment advisor (INA200004342)

At RW Investment Advisors, we are firm believers of India’s long-term economic fundamentals driven by a young and aspiring middle-class, sound educational and legal institutions, and a vibrant democracy.

We specialize in public market investments and have a proprietary framework that combines fundamental and technical factors to identify businesses that can create long-term wealth. Our guiding philosophy is the protection of capital and compounding of value over long periods.

Defensive strategy for capital protection

  • Sector Focus:
    • Invest in defensive sectors: Sectors that have shown resilience during down turns eg. Consumer
    • A defensive portfolio is likely to outperform during bad times and underperform during good times
  • Portfolio construction:
    • Market leaders – Companies which are leaders in the space and can compound capital over time
      • Criteria for investing in the right set of companies is outlined in the following slide
    • Arbs – arbitrage situations which will earn 15-20% on invested capital in relatively short periods
  • Timing:
    • Bias for buying during maximum pessimism or early stages of recovery
    • Slower deployment of capital – typically takes 6 months to a year

Look for companies in the top right quadrant

Investment Process for picking Market leaders

  • Idea generation
    • Screens, Other fund portfolios and Scuttle Butt approach
  • Working style
    • Operating analyst: Work with a part time industry expert for better commercial diligence eg. Pharma with an operating expert
    • Research access: Identify the best analyst for a stock
    • Strong focus on channel checks
    • Overlay quant techniques to enhance alpha
  • Risk Mitigation
    • Minimum market capitalization for stocks invested: $ 250 MM (~INR 1600 crores)
    • Maximum allowable positions: 35
    • Maximum allowable position in a stock – 15%;
    • Cash position could be as high as 50% if there are no opportunities
Parameter Description
No. of Positions
Upto 35
Target Returns*
15%+
Strategy
Low Beta and High Quality

Performance details:-

Portfolio Details

TWRR Data

Defensive strategy – outperformed during selloffs of February 2016 and March 2020

Team:-

Chaitanya Jagarlapudi

Managing Partner at RW Investment Advisors

Passionate about public market investing and applied-tech in improving investing outcomes

Commitment from family offices including Argonaut, Yashoda Family Office and Girik Capital

  • 15 plus years experience in capital markets including investing public and private markets
  • Last role as VP managing $ 300 MM at Argonaut Private Equity; a diversified global private equity fund with more than $ 6 bn AUM. Responsible for investments in the BFSI vertical and consumer mid-caps
  • Fintech engagements: Built Pivotapp – an algorithmic investing tool that combines formulaic investing with momentum; Advisor to Moneybloom – helped in building algorithms to automate investing in Mutual Funds
  • Previous positions: Investment Banker (TMT sector) at Lazard, Equity research Analyst at Irevna (CRISIL)
  • Chaitanya is a chemical engineer from IIT Madras and holds an MBA from Indian School of Business

Bismith Nayak

Analyst at RW Investment Advisors

Bismith is the Analyst at RW Investment Advisors. At RW Investment Advisors, his role is to understand companies without any bias for sectors and sizes. He is responsible for understanding portfolio companies deeply through both primary and secondary research. Previously he was an Associate with Tech Mahindra, where he had researched upon private equity, venture capital and M&A deals across industries and geographies. He has a Master of Commerce from Ness Wadia College of Commerce and a rank holder in CS.

He enjoys discussions on technology, behavior, literature and history and is an avid Counter Strike fan.

Ashok Danesh

Head of Operations at RW Investment Advisors

Ashok has been with the firm right since inception and is responsible for operations including trade execution, managing accounts, audit and taxation-related matters related to the firm. He shares an excellent rapport with our clientele and is the go-to man for all their queries and requests. He was previously associated with AHN Consultants, an audit firm where his role involved working on accounting and audit for the firm’s clients and managing compliance to company law requirements. He has more than 6 years of experience in this field and has a BBM – Bachelor of Business Management degree from LBSC, Bangalore.

He enjoys traveling and is a passionate music keyboard player.

"Investing should be more like watching paint dry or watching grass grow.”

Paul Samuelson