Saturday, 25 February 2017
Last updated 18 hours ago
Dec 20 2006 | 10:14am ET
Amit Chokshi, a former associate at the Royal Bank of Scotland, recently launched Kinnaras Capital Partners, an equity long/short vehicle.
On the long side, Chokshi is putting together a portfolio of concentrated stocks that are deeply undervalued but he isn’t necessarily shorting stocks that are overvalued. “Short ideas that I have are stocks that are trading at low P/E ratios because they look like value traps,” he said. “Sometimes you see a company with a low P/E ratio because they had maybe a one-time gain from an asset sale but their actual operating incomes continue to deteriorate.”
Kinnaras charges fees a 2% management fee and 20% performance fee, with an unusually low $50,000 minimum investment requirement. Chokshi said he purposefully set the minimum investment below industry standards because he wanted to make it viable to use his own network and raise money realistically.
Chokshi worked in the corporate advisory services group of the RBS, advising private equity groups on mergers and acquisitions. His firm, Kinnaras Capital Management, is based Stamford, Conn.