Drona Capital is a long-only equity fund firm which seeks long-term capital growth for its clients by pursuing time tested value-investing strategy. It strives to provide sustainable and adequate return on investment at minimal risk.

Investment Strategy

Investment decisions are made on the company's historical and operational performance and its proven competitive advantage over a long period of time, often exceeding decades.

Active avoidance of risk is the second key element of the investment decision. A huge emphasis is given to avoid generic (industry) or company specific risks . Most of the portfolio has negligible debt with consistent operating metrics and well diversified customer and suppler base.

Investment is made only when such high quality businesses are available at a discount to their instrinsic value.

Key Elements of Investing

Invest in high quality business

Key Elements of Investing

Invest in high quality business

Well run companies with experienced management team and long track record of market leading financial metrics of sales and earning growth as well as superior capital allocation strategy.

Wide Moat with proven ability to sustain the competitive advantage – most of our portfolio companies have #1 position in the industry they operate in

Strict Avoidance of Risk

Investments are avoided in fast changing industries or companies exposed to government regulations or those pursuing aggressive M&A.

Companies that are highly leveraged are not considered. Nearly 50% of our portfolio companies are net cash with no debt on their balance sheet.

Invest ONLY when the price is right

Market inefficiencies are leveraged from time to time, with investments made in equities that remain under the radar of large fund managers.

Invest long-term

Ideal investment period is FOREVER
Median holding period for the top 10 portfolio companies is 7 years.

Excerpts from our Annual Newsletter

 

For the first time, we had a portfolio company exceed ten times return this year- Mettler Toledo’s returns reached 1004% – a definite proof of the compounding effect of a great business, if held long enough. It is also a clear indication of our “selling strategy”- which is never to sell a stock just because it has doubled or tripled or even grown ten times. We will sell a stock such as Mettler Toledo ONLY when we believe the strength of its operating model, or its financial metrics has deteriorated considerably and therefore is not attractive as a long-term hold for Drona”