Blue Lotus Capital has a robust investment process with the aim of generating a superior return and preserving capital.
BLC uses proprietary bottom-up stock selection approach called SLoPE to build its portfolio. We believes that a great firm performs significantly better than an average firm on a variety of measures, but most importantly by showing a consistent and calibrated approach to growth and portfolio creation. We seek to evaluate each opportunity as a business analyst and not as a market or macroeconomic or security analyst.
BLC undertakes thorough due diligence on the potential investment once it has passed on all the parameters of the SLoPE architecture. BLC adopts a 3-step due diligence process for every potential investment in order to satiate identifiable concerns and also negate any personal biases.
BLC has incorporated the PRIDE model as part of its decision making process. The objective of the model is to clearly define each entity's role and distinctly outline the flow of information thus creating a formalized and participatory approach towards decision making.
As part of HAWK monitoring framework, BLC will continually seek inputs from industry advisors, suppliers, customers and competitors of our investments, track operational and financial performance to keep a tight vigil on the investments.
BLC follows a disciplined disinvestment process which would be based on business triggers, fundamental changes in the Company or Sector, targeted return or a combination of various macro changes in the Industry or Company. Over-arching aim for conducting such rigorous due-diligence at the time of investment and continuous tracking during the course of investment is to exit the investment with a superior return.
Risk management and capital protection is the bedrock of all the frameworks developed by BLC. It would strive to generate a superior absolute return while minimizing avoidable and foreseeable risks in all the investments and preserving capital. One of the basic tenants of following these proprietary processes is to benefit from their in-built risk management tools. This allows viewing risk in a holistic and multi-dimensional manner, to understand and manage it better.
All the professionals involved with BLC in various capacities of Investment Manager, Investment Committee and Advisory Board are committed to a transparent and simple investment process. Ethics and integrity are the utmost important principles of the firm's pursuit of investment management excellence.