VALUEx India

VALUEx India held in Mumbai between 7th and 9th November was a grand success. Thanks to everyone who participated. VALUEx is based on the concept of peer to peer learning and ideas worth sharing.

VALUEx India itself was based on an idea I received from my good friend Guy Spier. Guy explained to me the power of open source and non-solicitation. More...

Value Is Not In The Eyes Of The Beholder

When financial markets go through large dislocations, people buy and sell (mostly sell) for a wide variety of reasons. Most of the time, these reasons have nothing to do with the underlying fundamentals of the asset but everything to do with the fundamentals of the owner of the asset. Examples include redemptions, margin calls, regulatory trouble, change in leadership etc.

Many times these dislocations throw up fantastic opportunities. More...

The Indian Rupee And Its Discontents

The Indian Rupee has caused a lot of heartburn. It is the worst performing currency in Asia and has fallen 17% against the US dollar since the start of the year. Some of the questions on people's minds with respect to the rupee are:

What has caused the fall in the rupee?
The immediate simple answer is that the fall is caused by flows driven by supply and demand. India runs a deficit on the trade and current account. This deficit is funded by a surplus on the capital (investment) account. Volatility in the rupee in recent years has increased due to the inrease in volatility in global financial markets and the consequent volatility in India's capital account. India's domestic environment hasn't helped the capital account either. Policy paralysis combined with an over-hawkish Reserve Bank of India (RBI) has caused a complete collapse in capital investment in India. This has exacerbated supply constraints and fueled inflation. More...