Varun Madan : Building A Legacy Of Trust & Performance In Investment Consulting & Advisory
Varun Madan
Founder & Chief Investment Officer
With nearly a decade of experience in investment research and client management, Varun has demonstrated his expertise across various sectors, particularly in banking and financial services. His prior role as a Senior Investment Specialist at Invest India involved leading sector research and account management. Varun’s extensive experience includes positions at prominent investment firms and hedge funds, such as Metis Capital Management and Client Associates, Royal Capital and Black Swan Dexteritas, as well as a foundational role at JM Financial in equity and derivatives sales trading.
Beyond his professional accomplishments, Varun is a passionate advocate for personal growth and well-being, enjoying activities such as reading motivational literature, fitness training, and traveling. His diverse interests and commitment to excellence position him as a thought leader in the investment field, making a significant impact on the financial landscape.
Let’s hear more from Varun.
As the Founder and Chief Investment Officer, what approach do you take in developing investment strategies for the company?
As the Chief Investment Officer of Prescient Investments Global, the firm manages a blend of passive and active equity assets. The actively managed Prescient Equity strategy has shown impressive performance, achieving a 33 percent return for the calendar year 2023 and maintaining a 20.5 percent run on proprietary capital as of the September quarter, demonstrating the firm's
commitment as an investor.
Prescient Investments adopts a long-bias approach, employing long-term fundamental strategies to invest in high-quality publicly listed companies across various market capitalizations. Their investment decisions are based on fundamental valuations, qualitative assessments, and thematic analyses, often holding investments for at least 3 to 5 years to allow their investment thesis to play out. In contrast, their satellite investments, typically lasting 1 to 3 months, utilize data-driven momentum strategies primarily in the cash equity market, guided by a proprietary model.
Furthermore, Prescient Investments Global selects top performing investment managers for mutual funds, PMS, and AIF equity products based on risk-adjusted performance and robust investment philosophies. Additionally, the firm collaborates with promising private businesses seeking to enter the Indian market, focusing on both greenfield and brownfield expansions to facilitate business growth.
How do you offer your expertise to your team to deliver investment consulting and advisory services to investment firms and family offices, based on your experience?
As CIO, I adopt a dual approach to investing that combines both top-down and bottom-up strategies. This method not only directs our search for innovative investment opportunities but also enables the careful monitoring of our current portfolio. I take charge of structuring portfolios, constructing model portfolios, and making key management decisions.
A vital principle in effective investing is grasping the concept of Return on Invested Time, which is directly related to Return on Invested Capital. The teams I work with dedicate time to research, encompassing knowledge acquisition, financial modeling, quantitative analysis, and both primary and secondary research, all conducted under my supervision. The findings are synthesized into Investment Notes, Memos, and presentations, which serve to deliver insightful consulting and advisory services to investment firms and family offices. Ultimately, the objective is to provide actionable insights that lead to significant investment success.
What distinguishes your leadership style in guiding your team? Could you elaborate on your approach to leadership?
What distinguishes me as a leader and stockpicker is my understanding that successful investing hinges on a disciplined, process driven approach, coupled with passion,
Prescient Investments adopts a long-bias approach, employing long-term fundamental strategies to invest in high-quality publicly listed companies across various market capitalizations. Their investment decisions are based on fundamental valuations, qualitative assessments, and thematic analyses, often holding investments for at least 3 to 5 years to allow their investment thesis to play out. In contrast, their satellite investments, typically lasting 1 to 3 months, utilize data-driven momentum strategies primarily in the cash equity market, guided by a proprietary model.
Persistence, determination, & conviction set the stage for what we often call "luck", which ultimately leads to greater achievements
Furthermore, Prescient Investments Global selects top performing investment managers for mutual funds, PMS, and AIF equity products based on risk-adjusted performance and robust investment philosophies. Additionally, the firm collaborates with promising private businesses seeking to enter the Indian market, focusing on both greenfield and brownfield expansions to facilitate business growth.
How do you offer your expertise to your team to deliver investment consulting and advisory services to investment firms and family offices, based on your experience?
As CIO, I adopt a dual approach to investing that combines both top-down and bottom-up strategies. This method not only directs our search for innovative investment opportunities but also enables the careful monitoring of our current portfolio. I take charge of structuring portfolios, constructing model portfolios, and making key management decisions.
A vital principle in effective investing is grasping the concept of Return on Invested Time, which is directly related to Return on Invested Capital. The teams I work with dedicate time to research, encompassing knowledge acquisition, financial modeling, quantitative analysis, and both primary and secondary research, all conducted under my supervision. The findings are synthesized into Investment Notes, Memos, and presentations, which serve to deliver insightful consulting and advisory services to investment firms and family offices. Ultimately, the objective is to provide actionable insights that lead to significant investment success.
What distinguishes your leadership style in guiding your team? Could you elaborate on your approach to leadership?
What distinguishes me as a leader and stockpicker is my understanding that successful investing hinges on a disciplined, process driven approach, coupled with passion,
persistence, conviction,and intelligence. At Prescient Investments, we focus on understanding market cycles and the strategies that thrive within them. I encourage my teams that I work with to cultivate a genuine enthusiasm for public equity investing and commit to diligent effort. Clear and transparent communication is essential. I emphasize the importance of asking the right questions and focusing on the rationale behind our decisions. I advocate for authenticity in our work and believe that true confidence in investing stems from this mindset. Additionally, we've implemented a fitness initiative, as I've found a direct link between investment success, mental sharpness, and physical fitness.
What has your journey to success been like, and what guiding principles do you follow to achieve it?
In my view, success is not a destination but an ever evolving journey. Each milestone you achieve reveals new opportunities for improvement and further success. I've learned that persistence, determination, and conviction set the stage for what we often call "luck", which ultimately leads to greater achievements.
What future roadmap do you envision for your journey moving forward?
Prescient has been developing a track record of investment performance using proprietary capital, where the quality of investment ideas is paramount. Over time, I've recognized the importance of branding and marketing, which should enhance the investment aspect of the business.
Our goal is to expand assets under advisory for both the client equity advisory and consulting segments by collaborating with the right partners. We aim to realize this ambition both locally and globally.
Could you offer some advice for emerging leaders in this industry based on your experiences?
Having a clear vision is essential for launching any venture, complemented by the drive to follow it through with passion, courage, and resilience. Thick skin is also valuable in this journey. Starting Prescient at 34, I believe the industry needs fresh perspectives from younger investors, like those from renowned money managers such as Bill Ackman and Ken Griffin, who began their journeys early.
Varun Madan, Founder & Chief Investment Officer, Prescient Investments Global
Varun Madan is the Founder and Chief Investment Officer of Prescient Investments Global. With a robust background in investment management, he combines a process driven approach with passion and persistence. Varun is dedicated to empowering young investors, fostering innovation, and achieving success through strategic insights and effective portfolio management.
What has your journey to success been like, and what guiding principles do you follow to achieve it?
In my view, success is not a destination but an ever evolving journey. Each milestone you achieve reveals new opportunities for improvement and further success. I've learned that persistence, determination, and conviction set the stage for what we often call "luck", which ultimately leads to greater achievements.
What future roadmap do you envision for your journey moving forward?
Prescient has been developing a track record of investment performance using proprietary capital, where the quality of investment ideas is paramount. Over time, I've recognized the importance of branding and marketing, which should enhance the investment aspect of the business.
Our goal is to expand assets under advisory for both the client equity advisory and consulting segments by collaborating with the right partners. We aim to realize this ambition both locally and globally.
Could you offer some advice for emerging leaders in this industry based on your experiences?
Having a clear vision is essential for launching any venture, complemented by the drive to follow it through with passion, courage, and resilience. Thick skin is also valuable in this journey. Starting Prescient at 34, I believe the industry needs fresh perspectives from younger investors, like those from renowned money managers such as Bill Ackman and Ken Griffin, who began their journeys early.
Varun Madan, Founder & Chief Investment Officer, Prescient Investments Global
Varun Madan is the Founder and Chief Investment Officer of Prescient Investments Global. With a robust background in investment management, he combines a process driven approach with passion and persistence. Varun is dedicated to empowering young investors, fostering innovation, and achieving success through strategic insights and effective portfolio management.