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Water drops near a stack of stones

Pure Alpha

The Pure Alpha strategy employs a blend of multiple investment styles and time horizons, integrating bottom-up stock selection with top-down sector and regional allocation.

 

It is an active fund & unconstrained by the need to mimic any particular benchmark. It seeks to provide absolute return irrespective of market regime.

Our Investment Framework

🎯 Core Objective​​

  • High risk-adjusted returns over the long term — across market cycles

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🧠 Dual Investment Approach​

  • Bottom-Up (Stock-Specific)

✅ Secular compounders

🔄 Deep-value turnarounds

📉 Invest during mispricing

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  • Top-Down (Macro + Sectoral)

🌍 Global & sectoral macro bets

🔄 Index deviation to reduce correlation

⏱ Timely cycles & trend recognition

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🔍 What We Look For​

  • 📈 Earnings + Multiple Expansion potential

  • 🧱 Strong balance sheets

  • 🏷️ Established brands or durable moats

  • 🧑‍💼 Some institutional shareholding for governance

  • 💸 Low debt levels

  • 🚫 Avoid over-regulated and high-capex sectors

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🧩 Portfolio Characteristics​

  • 🎯 Focused portfolio: 7–15 positions

  • 📊 Higher allocation to mid & small-caps

  • 📉 Prevent-downside-first thinking

  • ⚖️ Mix of long-term holdings & tactical positions

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📏 Disciplined Risk & Exit Framework

  • Tactical Positions

📌 Exit near fair value

⚠️ Thesis review at 52-week low

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  • Long-term Holdings

🛑 Exit only on fundamental change

🔍 Monitor for long-term sustainability

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🔄 Dynamic Risk Management​

  • 🔐 Protective put hedging during adverse market conditions

  • 🧭 Actively monitored & managed — not buy-and-forget

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🤝 Fee Structure​

  • 💼 No fixed fees — performance-based only

  • 🔗 100% aligned with client outcomes

What we won't do

  • We won’t optimise for short-term performance while sacrificing long-term returns.

  • We won’t practice index hugging just so our returns are like "market" returns most of the time.

  • We won’t chase “hot” stocks, sectors and trends just to appear more attractive to you.

  • We won’t take undue risks driven by market sentiment & consensus.

INFORMATION

All clients have an option to onboard with Wave PMS directly, without  intermediation of persons engaged in distribution services. Clients can directly approach us by sending an email on contact@waveasset.in or through the Contact page.

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