Turnaround Titan: This fund manager defies Warren Buffett’s advice and bags multi-fold returns

When the guru of value investing, Warren Buffett asks you to stay away from a type of investing, you pay heed. Unless you are the kind who does not believe in taking sermons at face value. That is exactly how Madhusudan Sarda is.

Madhu has been dabbling in stocks from the age of 15 when he used to monitor his father’s portfolio. He approaches investing like a businessman would before a joint venture. The obsession with a thorough due diligence before every investment also comes from the pressure of managing other people’s money. This discipline, he says, can be attributed to the business background he has.

Madhu, currently co-manages a fund with Manish Bhandari at Vallum Capital. With their “Catch them young and ride them to their prime” strategy, the firm has, in its seven years in existence, grown clients’ money at a compounded annual growth rate of 40 percent. To add the cherry on top, the growth excludes the firm’s commission on trades. In fact, in the calendar year 2017 Vallum Capital gave a return of 68 percent excluding commissions.

Simply put, if Rs 1 lakh was invested with Vallum Capital on its inception, the investor would be sitting on around Rs 10.5 lakh now — a 10-fold increase in just seven years.

link :http://www.moneycontrol.com/news/business/markets/turnaround-titan-this-fund-manager-defies-warren-buffets-advice-and-bags-multi-fold-returns-2487515.html/amp