Lecture Notes: Value Investing and Top Fund Investors

Introduction to Moish Pabrai

• Indian-American businessman, successful value investor
• Net worth: ~$2 billion
• Author of "The Dhandho Investor"
• Follower of Warren Buffett
  • Claims to be a "shameless copycat" of Buffett's strategies

Importance of Following Top Investors

• Gaining investment ideas by tracking successful investors
• Categories of investors to track:
  1. Foreign Institutional Investors (FII)
  2. Domestic Institutional Investors (DII)
  3. High Net Worth Individuals (HNIs)
• Focus on long-term mindset investors

Categories and Tracking

• Total of 15 investors tracked closely (5 FIIs, 6 DIIs, 4 HNIs)
• Tools for tracking:
  • Screener.in
  • Trendline.com

Top FIIs to Follow

1. MIT

• Known for investing globally, including Indian markets
• Portfolio highlights:
  • Over $7,000 crore in Indian listed companies
  • Notable holdings include CMS Info System, Fusion Micro Finance, Barbeque Nation, KPIT Technologies, and more
  • Strategy: Identify undervalued companies, invest early, and exit when valuations are high
• Example: KPIT Technologies investment yielded 30x returns

2. Goldman Sachs

• Portfolio worth over $8,000 crore in Indian market
• Notable holdings include Amber Enterprise, Asian Chemical, Baj Consumer, CarTrade, Ethos, Gokaldas Exports, JK Lakshmi Cement, and more
• Strategy: Consistent buying in promising sectors and companies

3. Small Cap World Fund (Capital Group)

• Portfolio worth over 40,000 crore in Indian market
• Notable holdings include 361 Degree, Aptus Value Housing, Canara Bank, City Union Bank, Coforge, Max Financial, Newland Laboratories, and more
• Strategy: Focus on small-cap companies with growth potential

4. Nalanda Capital

• Founded by Pulak Prasad
• Portfolio value: Over 42,000 crore
• Notable holdings include Advanced Enzymes, AIA Engineering, Amar Raja Batteries, DB Corp, Elgi Equipment, Great Eastern Shipping, Matrimony.com, NRB Bearings, and more
• Strategy: Long-term holding (many stocks held for several years)

5. Jupiter Asset Management

• Fund: Jupiter India Fund
• Portfolio worth over 4,000 crore
• Notable holdings include Baj Consumer, CarTrade, EIH Hotel, Elpro International, Ethos, Fortis Healthcare, Godfrey Phillips, Gravita India, KDDL, MSTC, Newland Laboratories
• Strategy: Invest in promising sectors such as healthcare and technology

Summary and Takeaway

• Following top investors like MIT, Goldman Sachs, and Nalanda Capital can provide potential investment ideas
• Important to perform due diligence and deep dive into each company before investing
• Useful platforms: Screener.in and Trendline.com
• Upcoming videos will cover top DIIs and HNIs

Call to Action

• Leave comments about your portfolio and thoughts on the list of top investors
• Future topics will include in-depth analysis of DIIs and HNIs