About the smallcase
We use the power of data analytics to comb through 1,000 companies and find undiscovered, under-value companies which are unlikely to reduce in price.
Research has shown that purchasing shares at a discount to their cash flows produces super-normal returns. This has been shown to work across countries and geographies over long time periods.
Simple, mechanical methods such as shortlisting companies on the basis of P/E, EV/EBITDA, P/B, P/FCF etc., have shown to give extra-ordinary returns - better than almost any mutual fund, and have given results comparable to the world's most legendary investors.
However, such deep-value methods are rarely practiced in the real world because they go through very, very long periods of under-performance, sometimes lagging the market for 5 to 7 years.
In spite of growing sales and profitability, a ridiculously cheap company can remain cheap forever.
It is said that there is no free lunch in investing, the reason such a deep-value approach gives superior returns is because it does not work every single year.
Data analytics has changed the way we invest.
Newer research from across the world has found additional tools to supplement the traditional screening tools such as P/E and EV/EBITDA.
By applying forensic ratios, the companies with bad accounting can be weeded out.
By using quality filters we are left with only under-valued companies which are high quality.
And then we use price momentum to avoid value traps.
Past Performance vs
Apr 13, 2021
Note: All performance graphs & numbers are calculated using only the live data and includes rebalances. Past performance doesn't include cost or guarantee future returns.
About the Manager
After nearly a decade of stellar returns on our personal portfolio, we launched Tolani Investment Partnerships in 2018 with seed capital from a leading family office. We are a research-intensive, quantitative-focused investment advisory which uses the power of data to shortlist companies with a high probability of giving super-normal returns. Our methods have been validated on data from across countries, industries and time periods. Our core beliefs are as follows: 1) Transparency, 2) Evidence-Based Investing, 3) Systematic Decision Making, and 4) Win-Win client relationships.