HOW WE INVEST

Driven by Core Principles

Sound economic theory and decades of academic research form the foundation of our investment philosophy. Our firm is driven by an evidenced-based approach, Noble-prize winning insights, and the pursuit of higher returns while maintaining low costs and diversification.

Quantitatively Fundamental

Our strategies are fundamental in nature with rigorous application of financial engineering and quantitative tools to study and analyze large amounts of fundamental data.

Systematic Application

We follow a disciplined methodology in all aspects of the investment process, from strategy design to portfolio implementation.

Thoughtful Design

We aim to deliver higher returns within a risk-controlled framework. We believe that risk management is a key differentiator between firms that survive and thrive over the long run and those that don’t.

An enduring belief in the
POWER of MARKETS

Rather than relying on futile forecasting or trying to outguess others, we draw information about expected returns from the market itself—harnessing the collective knowledge of its millions of buyers and sellers as they set security prices.

Indian Markets Have Rewarded
Long-Term Investors
Growth of INR 1,000 from Apr. 2005 - Dec. 2023

INR 18,657

India Micro-Cap
Growth of ₹1,000 2005-2023

INR 15,431

India Mid-Cap
Growth of ₹1,000 2005-2023

INR 10,510

India Large-Cap
Growth of ₹1,000 2005-2023

INR 6,422

India Small-Cap
Growth of ₹1,000 2005-2023
₹1,000
2005
GROWTH OF A THOUSAND RUPEES
2023

INR 89,747 crores

Daily Average Equity Trading Value (Sep 2023)

At DGS, our investment approach is based on a belief in markets

Harnessing the power of markets driving all information into prices allows us to focus on areas where we believe we hold an advantage, such as integrating innovative research, constructing portfolios in a risk-managed framework, and servicing the institutions and advisors we work with.

We take a less subjective, more systematic approach to investing. The transparency and consistency of our approach make it one that investors can easily understand and stick with even during periods of market turmoil.

ACADEMIC RIGOR

On the Leading Edge of Applying Financial Science

We pride ourselves in the application of uncompromising research to capital markets and only construct portfolios using ideas that we firmly believe can benefit investors.

We do not believe in predicting the future of any one company or of the market. Instead, we focus  our attention on ideas that matter most; the ideas that have been shown to benefit  investors with positive returns over long periods of time.

Data should drive decisions

Patterns in data must not be forced or cherry-picked. If you torture data hard enough, it will tell you anything. We let the data speak in our research pursuits.

Backed by sound economic rationale

Not all data patters are made equal. We only act on those that are validated by sound investment rationale.

Time and region agnostic

The research we implement has been validated across business cycles, time-periods, and geographies making them universally applicable.

Not all returns are made equal

Returns can not be achieved in a vacuum. All our strategies are analyzed within a framework of risk.

THE BEST OF BOTH PASSIVE AND ACTIVE INVESTMENT APPROACHES

Focusing on the
DRIVERS of RETURN

We structure portfolios that emphasize characteristics that target higher expected returns and improve expected risk-adjusted returns.

EMPHASIZING HIGHER
EXPECTED RETURNS

Companies with high profitability outperform those with low profitability over time

Companies with positive momentum  outperform those that have lagged over time

Companies with lower valuation outperform those with more expensive ones over time

TARGETING LOWER
REALIZED RISK

Companies with lower beta improve risk adjusted returns relative to those with high beta

Companies with consistent earnings are less volatile than those with variable income

Companies with better earnings quality exhibit lower risk than those with higher accruals

THE DGS DIFFERNCE

Why Clients Choose Us

Every rupee invested with DGS is backed by a scientific approach and our commitment to providing an exceptional investment experience for the institutions and advisors we work with. In a crowded field, we stand out because of the qualities we espouse.

Independent

We aren’t owned by a bank or a publicly traded company. We don’t have any industry affiliations or run any competing businesses. We don’t sell any products or push third-party strategies. We are truly independent and work only for you.

Transparent

In a world of black boxes and hidden costs, we offer our clients full transparency in our investment process from strategy construction to trade execution. We welcome conversations with our clients and believe that complete transparency is one of the key drivers of a long-term, successful relationship.

Flexible

Our quantitative approach to fundamental investing and our scalable tech platform allow us to customize each portfolio to match the investor's needs and preferences. Instead of following a cookie-cutter approach, each account is tailored to the client's requirements while staying true to the overarching investment strategy.

Low-Cost

DGS has continually sought to pass efficiencies and benefits of scale along to clients to maximize their long-term returns. By working with institutions and advisors that serve ultra-high-net-worth families, we have taken a multi-decade approach to pricing, resulting in costs that are less than half the industry average.

CONNECT WITH US

Schedule a call with our Chief Investment Officer to learn more about how you can leverage our expertise, technology, and team to achieve an exceptional investment experience.

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DGS Capital is a global investment management firm committed to using a scientific, evidence-based approach to delivering exceptional investment results for its clients.

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This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change at any time without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.


The information contained herein does not constitute tax advice, and cannot be used by any person to avoid tax penalties that may be imposed by tax regulation authorities. Each person should consult an independent tax advisor about his/her/their individual situation before investing in any investment strategy.

All investing is subject to risk, including possible loss of principal.

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