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Investments by foreign individuals with no family connections to India are limited by requirements to obtain a tax identification number and annual tax filings. Another option for foreigners who want to access the growing Indian market is to invest in an offshore feeder fund. Such funds can accept investments in dollars and route the money to India for you.
We are long-term, equity-focused value investors. We look for companies that have intrinsic or inherent value that are not priced correctly by the market for some short-term or irrational reasons. While this is not easy, because the market is very efficient in its assessments, it is not impossible.
Shepherd's Hill Group, because of its relatively smaller size, is able to take positions in small and medium-capitalisation companies in addition to large, blue chip companies. This size advantage allows us to find mis-priced “hidden gems” along with large, well-known companies.
Regardless of the investment vehicle you select, our fee structures are designed to create a very high level of interest alignment between the client and Fund Manager..
We will maintain a balance between diversification and focus by holding roughly 15-20 positions in the portfolio. This framework seeks to avoid the risk of concentration in just a few positions while seeking to outperform the index or the average mutual fund that has 50 or 100 stocks in it.
We have a 10-year track record and expertise in the Indian capital markets providing various service options and structures to investors. Our focus is primarily on securities of Indian companies that are listed on the Indian stock exchanges. We can provide solutions to foreign citizens looking to invest in India.
We use a bottom-up approach to investment management. This means a focus on company-level operations and environments. Investment decisions are made purely on the merits of the security under consideration. We do not perform macro or sector analyses as a starting point for our research.
Our primary objective is protection of capital over the long term. Our clients are saving money for important purposes such as retirement or children's education. The secondary objective is earning superior returns.
We require all new investors to commit to an investment time period of 5 years. This long-term perspective allows us to take advantage of "time-arbitrage" opportunities. That is, we buy good, well-run companies at prices that are overly discounted due to short-term considerations.
A Feeder Fund is a fund in an offshore jurisdiction that provides a vehicle for investors to invest in India. This is generally less cumbersome for the investor.
An AIF is a privately pooled investment vehicle which can comprise Indian and foreign investors. The resources are pooled in the form of a trust and the funds are used for investing in a defined asset class and strategy.
Long term capital gains tax rates are set by the government from time to time. Currently, the LTCG tax rate is 10%.