A value-based investment advisory and management service
If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume - Benjamin Graham
It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently – Warren BuffettBluestars Capital (BCAP) is an online boutique investment management entity established to provide trusted investment management and advisory services to individuals and companies who have no relevant knowledge, time or are risk averse to manage their investment on their own. Our investment focus is the local stock market and we deal with public equities of listed companies. We are committed on delivering long-term value for our partners through a disciplined value approach, adherence to our principles and a reliable framework that addresses risk and safety of principle first and returns second.
The founder of BCAP is a Chartered Value Investor (CVI) and holds an Investment Advisor certification from the Colombo Stock Exchange, an MBA from Australian Institute of Business, Value Investing certifications from Columbia Business School (USA) and Stanford University (USA), in addition to investment management and advisory experience since 2005.
We govern ourselves based on the following simple principles:
- To assist and guide those who are unable to invest on their own
- We invest our funds alongside our partners in the same investments
- Risk minimization before return maximization
- Maximizing long-term positive results
Given the above, one must also be aware that investments by their nature are volatile and can lose a portion or all of its value due to uncontrollable/unforeseen events such as economic factors, expropriation, bankruptcy, fraud etc. Such risks can only be mitigated by adopting a disciplined and suitable approach, such as long-term horizon, suitable diversification, etc.
The single greatest edge an investor can have is a long-term orientation – Seth Klarman
Our strategy rests upon the following concepts:
- Intrinsic Value - We believe a stock’s worth is best determined by its underlying business economics, not by what others are willing to pay in the short-term
- Margin of Safety - We determine an investment’s margin of safety by the combination of the quality of the underlying company and the discount from a conservative appraisal of intrinsic value offered by the price
- Long Term Time Horizon - We seek to invest for the long term and will sell only when near or at intrinsic value is reached or when the gains justify selling, and therefore we are not unduly influenced by short term price fluctuations
- Patience and Disciplined - The market occasionally misprices securities for behavioral reasons. By remaining disciplined, we take advantage of the market’s mistakes while guarding against mistakes of our own
- Risk Factors - is primarily managed through zero or minimal levels of debt, sufficient margin of safety, suitable diversification and an understanding the fundamentals of the company
Most of the time, the successful execution of our strategy requires us to act against the crowd. Our edge over other market participants is having a much longer investment horizon, better temperament, better framework and the investment discipline to stay the course, especially in down and volatile markets.
Investment must always consider the price as well as the quality of the security - Benjamin Graham
Our fee structures are based on one of the investment types chosen from below
|Investment Type, Description & Indicative Scope||Fee Structure|
MMI – Manage My Investment - BCAP makes the investment decision
AMI – Advise My Investment - Partner makes the investment decision
|* Whenever BCAP buys shares on request of the partner, BCAP is entitled to the percentage given on the number of shares bought as payment.|
People calculate too much and think too little – Charlie Munger