We believe informed investors make better partners. Read through our most common questions and answers — organized by topic — so our first conversation can focus on what matters most to you.
Understanding what we invest in, how we select companies, and what makes the GHC strategy distinctive.
Global Hidden Compounders (GHC) is a concentrated, growth investment strategy. It uses fundamental analysis to identify and hold a small number — typically 4 to 6 — of exceptional global small-cap companies.
The three parts of the name tell the story:
This is a long-term strategy for investors with a 10+ year horizon who do not need the invested capital for daily living or near-term purchases.
We focus on companies with market capitalizations of less than $1 billion at the time of investment. This size is intentional — it represents the "sweet spot" where significant long-term growth potential exists before broader market discovery.
Companies above $1 billion have typically already been discovered by institutional investors and are more fully priced. AyurAsset may make exceptions when the fundamentals are compelling.
A company must meet a stringent set of qualitative and quantitative criteria:
* All analytical estimates are what we look for initially and IRR projections, revenue projections, etc. are estimates and are not guaranteed. All equity investments carry risk of loss.
There are two compelling reasons for global focus:
Access to better opportunities. Many of the best hidden compounders are in European and other international markets, where founder-led small-cap businesses are less covered by analysts and less competed for by institutional investors.
Dollar diversification. All GHC positions derive most or all of their revenues outside the US dollar. The stocks are also typically held in their native foreign currencies. If the US Dollar depreciates — as it has done over many multi-year periods due to inflation, fiscal or monetary policy — the value of these foreign-currency holdings increase in dollar terms. The strategy is designed to capture such foreign currency appreciation as a tail wind over whatever appreciation the equity provides in its native currency.
Finding companies that meet all of our criteria is rare and requires persistent, continuous research. We source our ideas using specialized databases, other investors we respect and follow, or adjacent companies in our investment portfolio. We then put them through our rigorous analysis guided by our selection criteria.
The research process covers company management and ownership structure, business characteristics and financials, competitive position, industry dynamics, and valuation relative to long-term growth potential.
This strategy is inspired in part by the book Hidden Champions of the 21st Century by Hermann Simon. This book covers characteristics of companies that have been successful long term. They are mostly under the radar and privately owned. We seek such companies but listed in the public market.
The strategy has also been guided by the 20+ year experience of the investment manager building one such private company.
We buy when a company meets our management and financial criteria and when our analysis indicates an above-market-average internal rate of return over the coming years — i.e., when the price is right for a long-term investor.
We invest with a 10+ year holding horizon. This is a low-turnover strategy. We spend significant time analyzing companies before investing, and we monitor them continuously thereafter. The goal is not to trade — it is to own extraordinary businesses long enough for their compounding potential to be fully realized.
Investment returns may come from multiple sources:
Returns are not guaranteed and investments may result in losses due to share price fluctuation, currency risk, or other factors. Our goal is to compound capital at above-market-average rates, but all investments carry risk despite careful research and selection.
The strategy has capacity of about $100 million before performance may begin to deteriorate due to position accumulation constraints in these thinly traded companies.
As AyurAsset grows and takes on more assets under management, we will maintain discipline around capacity. We may close to new investors to protect returns for existing clients if and when we approach our capacity limits.
Practical details about who qualifies, how accounts are managed, and what working with AyurAsset looks like day to day.
The strategy is suitable for someone seeking capital appreciation over 10+ years, who wants diversification away from the US Dollar, and who does not need the invested capital for daily living or near-term needs.
The ideal GHC client has typically built a business or ran a business division in a larger company, thinks in long time horizons, understands what makes a great business from the inside, and has sufficient liquid assets (we recommend $350,000+) to allocate a meaningful position ($100,000 minimum) without disrupting their financial security.
Yes. The minimum initial investment is $100,000, which can be from a regular taxable brokerage account or a retirement account (IRA).
We recommend that clients not allocate more than 30% of their total liquid net worth to the GHC strategy. This means we generally work best with clients who have at least $350,000 in liquid assets.
Why 30%? The GHC strategy is concentrated and intentionally illiquid. Your other 70% should remain in more liquid, diversified assets — this is where your financial security lives. GHC is your growth engine, not your safety net.
No. AyurAsset manages a single defined strategy — all clients invested in the Global Hidden Compounders strategy hold the same portfolio of companies. We do not customize holdings on a client-by-client basis.
Similarly, clients may not impose restrictions on the purchase or sale of individual securities within their accounts. The integrity of the strategy depends on holding the complete, carefully selected portfolio. If you have concerns about any aspect of this approach, the strategy may not be the right fit for you.
No. AyurAsset only manages accounts held at Interactive Brokers, an independent third-party custodian. We selected Interactive Brokers specifically because of their robust platform for trading international stocks and foreign-listed securities.
If you want AyurAsset to manage your assets, you will need to open a new Interactive Brokers account. We will provide a link so your account is opened under the AyurAsset advisory relationship.
AyurAsset does not hold, directly or indirectly, your funds or securities. Interactive Brokers maintains full custody of all your assets.
When you work with AyurAsset, you grant us authority to buy and sell securities in your account without needing to contact you for approval on each individual transaction. This is standard practice for managed accounts and allows us to act when opportunities arise or when portfolio adjustments are needed. When you set-up your account at Interactive Brokers, you will sign a document that gives AyurAsset discretionary trading authority and auto-deduct AyurAsset's fees monthly from your account.
You always maintain ownership of your account and can see all activity in real time through the Interactive Brokers platform. You can terminate the advisory relationship at any time with 90 days notice.
GHC is a buy-and-hold strategy with a 10+ year horizon. A position may be sold when:
Any sales may have capital gains tax implications. While we consider tax efficiency in our decisions, business fundamentals drive our priority. We always recommend consulting with your personal tax advisor regarding your specific situation.
Two significant differences make GHC fundamentally distinct from traditional global small-cap mutual funds or ETFs:
True small-cap access. Large funds — even those marketed as "small-cap" — must hold large volumes of shares for liquidity. As a result, their "small" companies are still large enough for institutions to trade easily. They cannot access companies in our market cap and liquidity limits at meaningful allocations. Our clients can, because we are investing smaller, more patient capital, that is not in a hurry to buy or sell typically.
True diversification, not phantom diversification. Most international large-cap stocks are closely correlated with the US market. When the US market goes down, they typically too. This is not genuine diversification — it is correlation wearing an international label. Our companies, due to their small size and limited public float, are far less correlated with US market movements.
Transparent answers on what we charge, how fees are calculated, and how your account works in practice.
AyurAsset charges 1% of client assets under management (AUM) annually for investment management services. This fee is paid monthly in arrears.
There are no performance fees — we do not charge extra when the portfolio performs well. Your gains belong entirely to you. There are also no commissions or hidden charges of any kind.
We believe our interests should be aligned with yours. We make more only when your portfolio grows in value over time.
The annual advisory fee is paid monthly in arrears based on the average daily balance of your account during that month. This means you are charged after the fact — based on what was actually in your account — not upfront.
Interactive Brokers, your independent custodian, deducts the fee directly from your account. You will authorize this deduction when you sign the client agreements. You will receive detailed statements from Interactive Brokers showing exactly what was deducted and when.
Yes. Advisory fees are calculated on your entire account balance, including cash and cash equivalents. This is important to understand because our strategy may involve selling securities and temporarily holding cash as part of active portfolio management.
Cash holdings in your account are not idle funds — they represent capital we are actively positioning, waiting for the right entry point. They remain part of your managed assets.
Our management fee is prorated for any partial billing periods — including the initial month when you start and the final month if you terminate service. You only pay for the actual time we are managing your assets.
No. Only assets you specifically would like AyurAsset to manage should be held in the Interactive Brokers account for which you grant us discretionary authority. If you have other investments or cash you are managing separately, those should be kept in separate accounts.
We believe in full transparency about risk. Every investment strategy involves risk, including the possible loss of principal.
All investing strategies involve risk and may result in a loss of your original investment, which you should be prepared to bear. Past performance is not a guarantee of future results.
Risk in the GHC strategy is managed primarily through the rigor of the initial selection process and continuous fundamental monitoring of every portfolio company. Significant research goes into finding companies that meet all of our criteria before any capital is deployed.
Positions are monitored continuously. A holding will be sold — despite the long-term bias — if the company's fundamentals deteriorate materially, if the founding operator leaves, or if a clearly superior opportunity emerges.
The 30% allocation recommendation also serves as a risk management tool at the portfolio level: by keeping the GHC strategy to a limited share of overall net worth, clients maintain diversification and liquidity elsewhere.
What the process looks like from initial conversation to fully onboarded client.
The first step is to complete our short inquiry form and we will reach out to you to schedule an initial consultation.
After the initial consultation, if we decide to move forward together, onboarding involves:
After you decide to proceed, onboarding typically takes 1 to 3 weeks, depending primarily on how quickly you are able to fund your Interactive Brokers account and provide the required personal and financial information.
We will tell you. During our initial conversation, we will discuss your investment goals, risk tolerance, time horizon, and what percentage of your assets you are considering allocating. If the strategy does not align with your needs, timeline, or risk tolerance, we will be direct about that.
Our goal is to work with clients who genuinely understand and are comfortable with our approach. A mismatch discovered before you invest is far better than one discovered after.
AyurAsset remains available to consult with you at the outset of your engagement and as needed throughout the relationship. We are here to answer your questions, explain our investment decisions, and provide context when market conditions or portfolio positions change.
Our goal is for you to feel confident and at peace — to know your assets are being watched carefully so you can focus on what matters most in your life.
The thinking behind the strategy and how it was developed.
The GHC strategy represents 20 years of personal trial and error distilled into a disciplined, repeatable process. It was developed by Sreekanth Nagarajan through his parallel experiences as a business founder and an individual investor making real decisions with his own capital.
The strategy draws intellectual inspiration from Hidden Champions of the 21st Century by Hermann Simon. It has been refined through years of personal application before being offered to clients.
We only offer strategies we have thoroughly tested and validated with our own money. The Global Hidden Compounders strategy is what we have the most experience and conviction in.
While additional strategies may be developed over time, we will only offer them when we have proven them to ourselves first. We are practitioners before we are advisors — and we believe that's the right order.
Yes. Sreekanth Nagarajan invests his own capital in the Global Hidden Compounders strategy. We believe in "eating our own cooking" — only offering what we personally invest in and believe in. Your success is genuinely aligned with ours.