Sam Gupta: Ripe Arbitrage Opportunity In Potential Indian Banking Sector Consolidation

Summary: visit http://www.chinamoneynetwork.com for more great content. <br> <br> In this episode of China Money Network, guest Sam Gupta, CEO of Grand Trunk Capital, explains why he is bullish on the Indian economy and markets, why Indian banks will consolidate in the next two years, and the reason why he prefers to work with the management team.<br> <br> Listen to the full interview in the audio podcast, watch an abbreviated video version, or read an excerpt.<br> <br> Q: First give us a brief introduction of Grand Trunk Capital?<br> <br> A: Grand Trunk Capital is a private investment partnership, (managing money) for institutions and family offices. We focus on special investments in India. Previously I managed a fairly large fund in partnership with Soros Management called QIF Management. QIF Management was at points in time the largest overseas investment fund in India.<br> <br> The strategy (of Grand Trunk Capital) is to focus on five or ten best investment ideas across sectors and geographies within the Indian markets. We are not a trading fund. We tend to take longer term and focused positions in Indian companies where we think there is sufficient mispricing and where we see sufficient upside down the road. Our strategy is very search based, value driven and focused on catalysts.<br> <br> Q: Can you talk about the performance of the (Grand Trunk Capital) fund?<br> <br> A: The fund was up 42% in 2012. We had a very bullish view on the banking system in India, and started buying some Indian banks towards the middle of the summer. That worked really well for us. We also took opportunities in the media space because of the catalyst of regulatory changes. One of our largest investments, (United Spirits), was bought out by Diageo, the world's largest liquor maker, at a significant premium. That's an investment we got into in early 2012.<br> .....