First, you must familiarize yourself with Brahmal Vasudevan’s profile. Brahmal Vasudevan is a Sri Lankan Tamil who grew up in Malaysia. He did his MBA from Harvard. He joined Ashish Dhawan in ChrysCapital and was instrumental in the huge success that ChrysCapital has seen by finding a number of multi-bagger stocks.
Brahmal set up Creador Capital in 2011 with a corpus of about $130M (Rs 762 crore).
Creador’s latest portfolio reveals secrets of the investment philosophy of Brahmal Vasudevan. The philosophy is actually quite simple: Buy stocks of well run and established companies at reasonable valuations and sit tight.
Creador Capital’s Indian portfolio is a concentrated one with only three stocks.
The first stock is Cholamandalam Investment and Finance Company, of which Creador holds 66.28L shares. The shares were bought in February 2012 at Rs. 160 each. At today’s CMP of Rs. 370, Creador has made a gain of 128%. The Chola holding is worth Rs. 245 crore.
Creador’s second stock is Repco Home Finance, of which it holds 46.39L shares. Repco was bought in February 2013 (prior to the IPO) at Rs. 156 per share. At today’s CMP of Rs. 415, Creador is sitting on gains of 166%. The Repco holding is worth Rs. 193 crore.
The third stock is Somany Ceramics, of which Creador holds about 43.47L shares (in the name of Latinia Ltd). These stocks were bought in February 2014 at Rs. 115 per share. At the CMP of Rs. 243, Creador has already doubled its money. The holding in Somany is worth about Rs. 105.65 crore.
Now, the important point is that each of Creador Capital’s stock picks is still a great buy because they will benefit enormously from Namonomics. Repco Home Finance (along with Dewan Housing) is an obvious beneficiary of NAMO’s thrust on affordable housing for the masses (see Why We Need To Grab A Chunk Of Housing Finance Stocks Soon). Somany (along with Cera Sanitaryware, HSIL & Kajaria Ceramics) is also an obvious beneficiary of the same theme. Chola is also a beneficiary of the surging middle class and their increasing prosperity (see also Why We Need To Grab Stocks Now Before NAMO Implements His “100 Cities” Idea).
The best part is that Creador Capital is setting up a new fund with a corpus of up to $250 million (Rs 1,500 crore). The fund has already collected about $220 million (Rs 1,320 crore) and will close by August 2014.
This time, we must not miss out on the stocks that Brahmal Vasudevan picks for the new fund.