CapGrow Capital Advisors is a SEBI registered PMS. CapGrow operates under the discretionary model. It received its license in Oct 2018 and commenced operations in Nov 2018. CapGrow operates the fund under two strategies – Growth Strategy and Special Situations Strategy. Under Growth Strategy, the aim is to generate returns by investing in companies that could offer sustainable long-term capital appreciation and are available at reasonable valuations. The idea is to invest in well-established businesses across sectors with a bias to invest in well managed companies with strong fundamentals and high growth prospects. Special situation is an event driven strategy. The main objective of the strategy is to utilize special situations that stem from corporate actions including buy-backs, a delisting, spin offs and demergers, delisting or Broken IPOs and distressed situations.
Mr. Arun Malhotra has more than 25 years of experience in the Indian Capital markets. He gained trading and research experience with BLB Ltd. in early 1990s and moved to DBS Securities in the year 1997 to set up their Indian equity broking operations right from scratch. He was an experienced analyst for the life sciences fund at Manning & Napier, New York – a $26 Bn Asset Management firm. Thereafter, he came back to India and ran a U.S hedge fund (2005 -2013) in Mumbai. This fund was promoted by Randal Smith, a pioneer in distressed investing. The peak corpus size was $300 Mn and was invested across the capital structure of the firms. The fund performance was well above the benchmark indices through various cycles. Arun was involved as a consultant to a European Investment Bank for their business in India and managed/invested his money in listed equities. The performance of the proprietary portfolio exceeded the benchmarks with complete focus on quality stocks and special situation investing. Arun has completed his executive MBA from FMS Delhi (1997-2000) and his full-time two-year M.B.A (2001-03) from one of the top business schools in Finance - Simon Business School, University of Rochester, New York.