How we thinkabout capital.
Our investment approach is built on one conviction: the best returns come from identifying the right macro theme, selecting the most powerful instrument to capture it, and holding with discipline through the inevitable volatility.
Safety of capital.
Alpha above everything.
Safety of capital.
Alpha above everything.
At Rational, we believe that the highest returns come from making the correct wealth allocation decisions at the right time. We always start by asking a fundamental question: which asset class, market, and product gives us the best risk-adjusted opportunity and when should we enter? And then, we deep dive into which stocks to buy, at what time and valuation.
This is what we call disciplined capital allocation — the willingness and agility to move capital decisively from one asset class to another when the evidence is overwhelming
“Safety of capital remains the primary goal. Alpha focus is what we do with the capital we protect.”
Identify the Right Asset Class First
We start at the macro level. Asset class and market selection come before stock selection — always.
Marry Fundamentals with Technicals
All four analytical lenses — fundamentals, macro, technicals, sentiment — must align before we deploy capital.
Be Flexible & Asset-Class Agnostic
We have no permanent home — India, global equities, miners, derivatives. We go where the evidence is strongest.
Invest Personally First, Always
Our own capital enters every fund before we invite investors in. Proof of conviction, not just conviction.
Marrying Macro, Fundamentals, Sentiment & Technicals.
Every position we take is the product of all four analytical lenses working in alignment. We never act on one dimension alone.
Macro
Top-down identification of inflection points in macro indicators like global monetary cycles, commodity cycles and central bank behaviour. Through these structural macro shifts we develop actionable investment themes ahead of market consensus.
“Translating macro inflection points into actionable, high-conviction investment themes.”
Fundamentals
Deep primary research on every position — We look for businesses with strong free cash flow, cheap valuations, and a clear re-rating catalyst. No position enters the portfolio without a complete fundamental case.
“Value-based research to identify the correct proxies for each macro theme.”
Sentiment
Market sentiment — crowd positioning, put-call ratios, institutional flows — tells us where and when there is extreme fear and extreme greed. We look for extreme fear as our entry signal and extreme euphoria as our exit signal. Sentiment is often the final confirmation before we act.
“We buy when others are fearful. We exit when conviction becomes consensus.”
Technicals
Price action analysis across multiple time frames to determine the optimal entry and exit. A fundamentally sound thesis in a technically broken structure remains a value trap until the chart confirms. We wait for the price action to align before deploying capital with conviction.
“The right thesis at the right price — entry timing is as important as stock selection.”
How we go from insight to investment.
A rigorous, repeatable 5-step process that we have followed across every fund and every major capital allocation decision since 2008.
Scan for structural shifts large enough to sustain multi-year tailwinds. What is the market mispricing, and why?
Identify the instrument with the most asymmetric exposure to the thesis — not always the most obvious one.
Primary research on every position. Strong FCF, clean balance sheet, credible management, attractive valuation.
Price action and sentiment must confirm the thesis before capital is deployed. Entry is as important as the idea.
Hold through volatility as long as the thesis is intact. Exit when it has played out — no anchoring, no attachment.
Convinced by the approach?
Speak to our team to explore which fund suits your investment goals
Capital allocation across themes.
Each fund applies the same investment philosophy to a different macro theme, instrument, and investor profile.
Fund I · SEBI AIF
India Long-Only Fund
A high-conviction portfolio of Indian listed equities with a heavy tilt toward small and mid-caps where we see asymmetric reward.
Fund II · GIFT City
Gold & Silver Miners’ Fund
A focused vehicle for strategic exposure to global gold and silver mining equities — operated from GIFT City.
Fund III · SEBI + GIFT City
Absolute Return Fund
A quant plus discretion model-based Long-Short strategy that focuses on identifying periods of extreme greed and fear to capture significantly large moves while sitting out of sideways choppiness and major drawdowns.
Ready to invest with rational conviction?
Join investors who trust us with their long-term wealth creation — because our capital is always in alongside theirs.
