KUALA LUMPUR: Businessman Brahmal Vasudevan is believed to have recently taken up a stake of up to 3% in telecommunication services company OCK Group Bhd, said a source close to the matter, adding that he may consider upping his stake to a substantial one.

“Brahmal has recently taken up around 2% to 3% of OCK’s shareholdings through one of his companies, and may be looking at taking up a substantial stake in the company somewhere this year, due to OCK’s good financial record and its regional expansion activities,” the source told The Edge Financial Daily.

Brahmal is best known as the founder and chief executive officer of Creador II LLC, a private equity firm, which according to its website, partners with passionate entrepreneurs to grow world-class businesses in South and Southeast Asia.

[Brahmal cut his investment teeth after leaving Ananda’s group in 1999 to head to India, where he teamed up with a classmate from Harvard to co-manage a private equity fund called ChrysCapital. In India, the team achieved huge success, hitting annual returns of 43% for 11 years, capitalising on India opening up its economy and the flourishing of outsourcing services-driven companies tailored largely to the US market.

With such accolades to his name, Brahmal decided to venture back home to set up Creador and raise his first fund.] (source: The Star 27 November 2015)

3.  IS HE REALLY THAT GOOD?

If you invest in ChrysCapital, he will turn your RM1m into RM51m in 11 years time

4.  WHAT IS HIS SECRET?

Creador invests in sectors that offer high growth and in companies that lead in those segments. Companies are assessed on management strength and track record as well as sustainability of earnings, among others.

“We don’t like cyclical sectors, that is why we avoid sectors like commodities,” says Brahmal.  (There are good cyclical stocks as well, perhaps the timeline for investment is longer, such as Asiatic (now Genting Plantation), and some well managed plantation companies, if you don't understand the biz model, it is not advisable to participate.)

Creador examines between 300 and 400 companies a year and has a strong focus on Malaysia, Indonesia, Singapore and Indonesia.

5.  DOES HE OR CREADOR HOLD ANY LEMONS?

Based on my limited research, every super investor has his bad days.  As long as the he has more summer days than winter, that is fine.

I am sure we want to know what lemon did he carry, actually, is still in progress.  Creador is involved in turnaround of Masterskill Education Group Berhad.  Today is about 22 sen.  Of course, the turnaround is still on going.  Lets hope these guys can do it.

6. LESSON LEARNED

a.  Turnaround stories is nice to hear, but very tough to do.  

b. Some of these companies need to be turned around, Maybulk, Armada, SILK, AAX and so many more.  You may have "great manager", if the industry is not on your side, it is very difficult to turn around.

c.  Don't beat yourself up if you hold some lemons.  Everybody does.  My fund manager was caught with AAX IPO at RM1.20, some fund manager are caught with Maybulk, some with Chinese companies, one fella stuck with Parkson, there are so many.  It will be terribly boring to tell your kids that you only have winnings.  Just learn from it and move on.