STOIC M.A.H.I. Fund
Machine’s Aptitude, Human IntelligenceA Unique “Evidence-Driven” Rule Based Fund
ABOUT US
“Proper Preparation Prevents Poor Performance”
In the world of investing, many try to predict what's coming next. But at the Stoic M.A.H.I Fund, we do things differently. We focus on being prepared for anything, rather than trying to guess the future.
Our approach is inspired by ancient wisdom: we stay alert to what's happening right now and think ahead about what could go wrong. This doesn't mean we're pessimists - far from it! We're building portfolios that survive tough times and actually get stronger when things get shaky – a strong portfolio that grows more powerful with each challenge.
The Mind Behind M.A.H.I: Puneet Khurana, CFA®
Stoic Investment Manager’s M.A.H.I Fund is led by Puneet Khurana, a veteran in the investment world with a track record that speaks volumes:
- 15 Years of Investing Expertise: Puneet has navigated through various market cycles, honing his skills and refining his approach.
- Former Research Head: Led research for a $1 Billion+ Singapore-based India-focused hedge fund.
- Decadal Success: Successfully advised on equity portfolios for over 10 years, consistently delivering value to investors.
- Academic Contributions: Serves as a guest faculty at prestigious institutions like IIT Delhi and MDI Gurgaon, sharing his knowledge with the next generation of financial leaders.
- Educational Background: MBA in Finance & Strategy from MDI Gurgaon, integrating theoretical knowledge with practical expertise.
- Intellectual Prowess: Member of Mensa India, bringing a high level of analytical thinking to investment strategies.
Our Foundations: Evidence, Not Emotions
Most funds build castles in the air. We aim to build fortresses on bedrock. Our foundation? Cold, hard, undeniable evidence. While others chase the latest market fads and succumb to the noise amidst “expert” opinions, we filter deep into the very heart of each sectoral theme, each industry, and each company.
Why? Because we understand a fundamental truth that eludes most: different sectors dance to different tunes. A one-size-fits-all investment strategy is a recipe for mediocrity at best, disaster at worst. Our proprietary M.A.H.I. (Machine’s Aptitude, Human Intelligence) system tailors its rulesets to the unique requirements of each sector, creating quiet and sustainable returns where others produce mere noise.
While most rule-based funds stick to a one-size-fits-all approach, at M.A.H.I, we aim to break the mold with personalized, evidence-based, and actionable intelligence:
The M.A.H.I Way
- Machine Aptitude x Human Intelligence: We combine advanced machine learning with seasoned investor insights for superior decision-making.
- Evidence-Driven Approach: Our strategies are rooted in hard data and real-world market understanding, not hunches or trends.
- Sector-Specific Intelligence: Unlike one-size-fits-all funds, we tailor our approach to each sector's unique dynamics, going beyond generic strategies.
- Preparedness Over Prediction: We focus on building resilient portfolios that thrive in uncertainty, rather than trying to predict market movements.
- Contrarian by Nature: We seek overlooked opportunities and avoid overvalued "crowd favorites," capitalizing on market inefficiencies.
- Risk-Aware Investing: Our strategy identifies hidden risks where others may see safety, protecting your investment through thorough analysis.
- Flexible Opportunism: We're not bound by rigid sector or market cap restrictions - we follow value wherever it leads, adapting to market conditions.
- Long-Term Continuous Adaptation: We aim to build generational wealth using our evolving M.A.H.I system, led by experienced professionals.
The Homo Machina Edge: Beyond Human, Beyond Machine
Our strategy leverages the strengths of both machine learning algorithms and human intuition, leveraging a hybrid intelligence that aims to navigate the complexities of financial markets with unprecedented acuity. This approach manifests in every facet of our investment process:
Quantamental Analysis: The New Frontier of Stock Selection
1. Quality Businesses at Reasonable Valuation: The AI-Enhanced Warren Buffett
SELECTION:
- Cash-generating machines across business cycles
- Excellent capital allocators
- Pristine management & corporate governance
- Reasonable valuations (inclusive of quality premium)
SELLING:
- When valuation premium goes beyond reasonable justifications
- When expected XIRR goes below our minimum threshold
- When business fundamentals deteriorate and the evidence for ‘Quality’ dissipates
2. Cyclicals: Riding the Waves with Silicon Surfboards
SELECTION:
- Sectors closer to the bottom of their respective business cycles
- Businesses with ability to ride the down cycle
- Companies with operating leverage for outsized gains during up cycles
- Key sectoral data pointing to possibility of cyclical reversals
- Deep value present in valuations
SELLING:
- Cyclical upturn fails to materialize
- Valuations of cyclical companies exceed their justified normalized values
- Sectoral operating matrices are near upcycle extreme values
3. Sectoral Tailwinds with Strong Balance Sheets
SELECTION:
- Visibility of boost to the key drivers of profitability for a particular sector
- Favorable regulatory & industry dynamics for the benefits to flow to the companies
- Most efficient and transparent managements for certainty of benefits for shareholders Strong
- Balance Sheets & reasonable or exciting valuations exists
SELLING:
- When valuation exceeds a justified reasonable threshold or the Required XIRR goes below threshold
- Perceived sectoral tailwinds fail to materialize
- Existing sectoral tailwinds have started to show signs of exhaustion
The Homo Machina Investment Process:
A Synergy of Perceptrons & Neurons
Data Ingestion
Machine systems continuously absorb and process vast amounts of structured and unstructured data.
Pattern Recognition
ML algorithms identify complex patterns and anomalies.
Hypothesis Generation
AI helps generate investment hypotheses based on recognized patterns.
Human Validation
Expert analysts review the hypotheses, providing context and strategic insight.
Decision Synthesis
The final investment decision emerges from the synergy of machine-driven analysis and human jurisprudence (granular findings + judgment)
Execution and Monitoring
Our systems execute trades and continuously monitor positions, alerting human managers to significant developments.
Our Promise to You
- Proven expertise in navigating complex market environments
- A novel, evidence-based approach to stock selection
- A dynamic strategy that adapts to market realities
- A track record of outperformance across various timeframes
Contribution | Fixed Fee Option | Variable Fees Option | |||
---|---|---|---|---|---|
Fixed Fee | Management Fees (M.Fees) | Hurdle Rate | Performance Fees (P.Fees) | ||
1Cr - 3Cr | 2.50% | 1.50% | 10% | 15% | |
3Cr - 5Cr | 2.25% | 1.25% | 10% | 15% | |
5Cr - 10Cr | 2.00% | 1.00% | 10% | 15% | |
> 10Cr | 1.50% | 0.75% | 10% | 15% |