Quantum Advisors and Hamblin Watsa Investment - A Strategic Alliance

Posted On Wednesday, Nov 25, 2015


When our sponsor Quantum Advisors began the search for a suitable partner, the most important factor was to identify a match who valued our work, philosophy and would willingly support us in the same without changing who we are. And as you know, the search ended at the start of this month, with the announcement of the agreement under which Hamblin Watsa Investment Counsel (HWIC), an affiliate of Canada’s Fairfax Financial Holdings will hold a 49.20% stake on Quantum Advisors, subject to regulatory approvals.

Similarities a likely match make?

Coming to think of it, we can draw a lot of similarities between our new partner and us; similarities that we believe will make our association fruitful and successful. Here are just a few of them –

Our Chariman Mr. Ajit Dayal set up Quantum, India’s first independent Equity Research company in 1990, following his studies in the USA and the exposure to mutual funds there. Fairfax was founded by Mr. Prem Watsa in 1985, after the decade-long experience he gained in asset management in Canada.

Like Quantum, Fairfax’s investment philosophy is based on the value approach. Value investors buy shares of sound companies at prices below their underlying long-term value. They expect to make money over time, not in the next month or two. While it gives us pleasure that Quantum qualified as a value proposition in the eyes of Fairfax, this gives you reason to anticipate that the partnership will be long-term.

As outlined in our vision statement, Quantum has pledged to serve its investors with the highest standards of integrity, ethics, and transparency. Therefore when we approached Fairfax, a company that holds these principles in high esteem, we had the confidence that it would be a great value match. Here’s a quote by Fairfax’s promoter Prem Watsa in an interview held a couple of months back, “We are looking for honest, ethical businesspeople who will continue to build their businesses with us as a partner”. Please click here to read the full interview.

A partner who leaves our DNA unaltered

We are happy that in Fairfax we have found a partner who will not be involved in the day to day operations and management, including research and investment management of the schemes. Like good partners do, Fairfax will leave us alone to focus on our strengths. They will remain a passive financial shareholder in Quantum Advisors and support us financially.

Therefore our DNA will remain unaltered. Quantum will continue to provide low cost, simple and sensible long term solutions for a range of your investment needs. And we will continue the struggle against the existing opaque system as we have done over the past 9.5 years, and put investors’ interests first always.

Quantum is here to stay!

We are aware, that in the past few months several investors who appreciated our philosophy and long term track record shied away from investing with us due to the net worth dilemma. (Not that we weren’t confident of fulfilling it in time!) So now with the net worth barrier behind us, such investors can confidently commit their funds to our trust. We believe our existing investors too will increase their holdings with us and reiterate their trust in us.

And as we continue diligently in our mission to “offer our investors a disciplined research and investment process to take advantage of the long-term investment opportunities that exist across various asset classes”, we will together have built India’s premier investment management company. We eagerly look forward to your participation and support in this journey.

Do share your thoughts, feedback or any queries you may have on this matter at [email protected], we will be delighted to interact with you.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. Please visit – www.quantumamc.com/disclaimer to read scheme specific risk factors.

Above article is authored by Quantum.

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