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While market volatility is seen as a red flag for investors, Rashi Talwar Bhatia, CEO & CIO, Ashmore believes that investors should take advantage of market inefficiencies during times of heightened volatility.
At the recent CafeAlt Conference 2024, Rashi said that investors should not be afraid of volatility as it leads to mispricing of stocks. In fact, volatility creates good investment opportunities.
However, all mispricing doesn’t necessarily translate into opportunity. The CEO and CIO of Ashmore said that it is important to take a call on whether a downfall is transient or not. To assess this, she analyses the company’s balance sheet, cash flows, debt levels over multiple quarters to know the reason for mispricing.
Rashi also focuses on the remedial measures taken by the sector or the company that can lead to revival in performance. She also focuses on company’s competitive advantages.
Sharing her experience, she said that it is okay for fund managers to not follow the consensus and take calls based on their own judgement.
Rashi’s strategy is to invest in companies when their prices are below intrinsic value. She focuses on good businesses, which are going through difficult times and are underpriced.
She sums up her strategy as market cap and benchmark agnostic with a bottom up stock selection and a high conviction portfolio.