DOCUMENT 1: COMPANY PROFILE & INVESTMENT PHILOSOPHY PT Nusantara Capital Partners Building Indonesia's Investment Future Last Updated: January 15, 2025 Version: 3.0 1. Company Overview PT Nusantara Capital Partners is an investment management firm founded in 2018 with a singular mission: to generate superior risk-adjusted returns by investing in Indonesia's highest-quality public companies. Headquartered in the SCBD district of Jakarta, we manage IDR 5.2 trillion in assets as of October 2025, representing one of the fastest-growing independent asset managers in Indonesia. Our founding team identified a gap in the Indonesian market—too many investors chased short-term momentum while neglecting fundamental business quality. We built Nusantara Capital Partners on a different premise: that patient, research-intensive investing in exceptional businesses would generate wealth for our clients over the long term. Since our inception, we have achieved a compound annual return of 19.3% versus the IHSG benchmark's 12.8%, demonstrating the power of our disciplined approach. Our assets under management have grown from IDR 500 billion at inception to IDR 5.2 trillion today, driven equally by strong performance and client confidence. Mission To preserve and grow our clients' capital by investing in Indonesia's highest-quality businesses with sustainable competitive advantages. Vision To be Indonesia's most respected investment firm, known for rigorous research, disciplined execution, and exceptional long-term results. 2. Investment Philosophy Our investment approach rests on four core principles that guide every decision we make: Quality Over Everything We invest only in businesses with durable competitive advantages—what Warren Buffett calls "moats." This means companies with strong brands, network effects, regulatory advantages, or cost structures that competitors cannot easily replicate. We assess quality across four dimensions: 1. Economic Moat : Can this business sustain pricing power and market share for 10+ years? 2. Management Excellence : Does leadership allocate capital wisely and treat minority shareholders fairly? 3. Financial Strength : Does the company generate consistent returns on equity above 15% with sustainable leverage? 4. Growth Runway : Can the business grow revenue and earnings at 10%+ annually without compromising quality? Long-Term Time Horizon Our typical holding period is 3-5 years, though we've owned some positions for more than six years. This long-term orientation provides three advantages: ● We can ignore quarterly noise and focus on fundamental business trends ● We benefit from the power of compounding in exceptional businesses ● We minimize transaction costs and tax inefficiencies We tell prospective clients: if you need your money within three years, we're not the right partner. Our strategy requires patience. Concentrated Conviction We typically hold 23-27 positions, focusing our capital on our highest-conviction ideas. Our top 10 holdings represent approximately 60% of the portfolio, while our top 5 represent about 35%. This concentration reflects our belief that over-diversification dilutes returns. Each position represents hundreds of hours of research. We know these businesses intimately—their customers, suppliers, competitors, and management teams. This depth of knowledge gives us the conviction to hold through volatility. Disciplined Risk Management Concentration requires discipline. We maintain strict risk limits: ● Maximum single position: 8% at cost ● Maximum sector exposure: 30% ● Minimum liquidity: 90-day average daily volume of IDR 5 billion ● Maximum portfolio turnover: 40% annually We also employ scenario analysis, stress testing, and regular risk reviews to identify emerging vulnerabilities before they become problems. 3. Team Structure Our team has grown strategically from 25 professionals at the start of 2024 to 28 today, with additions focused on strengthening our research capabilities and operational infrastructure. Leadership ● Chief Executive Officer : Manages overall firm strategy, client relationships, and business development ● Chief Investment Officer : Oversees all investment decisions, chairs Investment Committee (appointed February 2025) ● Chief Operating Officer : Manages technology, operations, compliance, and finance Investment Team (18 people) ● 6 Portfolio Managers : Senior investment professionals with 10+ years experience, each responsible for sector allocation and final buy/sell decisions ● 12 Analysts : Research professionals covering 5-8 stocks each across our core sectors In 2024, we added three analysts to deepen coverage in technology and consumer sectors. We plan to add three more in Q4 2025 to expand into healthcare and materials. Operations & Support (10 people) ● Trading & Operations (3) : Execute trades, manage settlements, and handle custody relationships ● Technology (2) : Maintain systems, develop internal tools, and manage data infrastructure ● Compliance & Risk (2) : Ensure regulatory compliance and monitor portfolio risk metrics ● Finance & Investor Relations (3) : Handle accounting, reporting, and client communications 4. Track Record (2019-2024) Our performance history demonstrates the power of consistent execution: Year Portfolio Return IHSG Benchmark Outperformance AUM (IDR Trillion) 2019 +15.2% +8.4% +6.8% 0.8 2020 +8.7% -5.1% +13.8% 1.2 2021 +22.4% +10.2% +12.2% 1.8 2022 +4.8% +4.1% +0.7% 2.5 2023 +18.9% +11.6% +7.3% 4.2 2024 +23.5% +15.8% +7.7% 5.0 Cumulative (2019-2024) : +140.3% vs +54.7% benchmark Key observations: ● We have outperformed the benchmark in every calendar year ● Our worst year (2022) still beat the benchmark ● Our average annual outperformance is 8.1 percentage points ● We protected capital in 2020's COVID crisis while the market declined 5. 2024 Highlights: Our Best Year Yet Last year marked our strongest performance since inception, with portfolio returns of +23.5% versus the IHSG's +15.8%. Several factors contributed: Strategic Decisions That Worked ● Doubled our GOTO position in Q3 2024 at IDR 78, capturing the subsequent recovery to IDR 142 by year-end (+82% return) ● Exited BRIS in Q2 at IDR 2,850 before Islamic banking sector underperformed (-8% in H2) ● Overweighted technology sector (28% vs 18% benchmark), capturing +35% sector returns Research Quality Improvements ● Integrated Sectors API for real-time Indonesian market data, improving research speed ● Implemented AI-assisted research tools, increasing analyst productivity by 15% ● Launched peer review process for all initiation reports, improving research quality scores Team Development ● Added three experienced analysts from bulge bracket firms ● Achieved 95% employee retention (lost only 1 person to retirement) ● Completed 100% of team on CFA Level 2 or equivalent Client Growth ● Net inflows of IDR 580 billion (12% organic growth) ● Added 4 new institutional clients including two pension funds ● Client satisfaction score: 9.2/10 (up from 8.7 in 2023) 6. Competitive Advantages What differentiates Nusantara Capital Partners in an increasingly crowded market? Research Depth Our analyst-to-AUM ratio is among the highest in Indonesia. With 12 analysts covering 60-70 stocks and managing IDR 5.2 trillion, each analyst oversees IDR 430 billion—allowing deep, focused research. Larger competitors often have analysts managing IDR 1+ trillion each, limiting research depth. Alignment of Interests Our portfolio managers and senior analysts invest their personal capital alongside clients. Total employee investment exceeds IDR 300 billion. We eat our own cooking. Technology & Data We invested early in technology infrastructure: ● Proprietary data pipelines using Sectors API for Indonesian markets ● AI-enhanced research workflows (deployed 2024) ● Automated portfolio monitoring and risk analytics ● Custom-built research database with 7 years of historical analysis Boutique Culture at Scale We're large enough to access management teams and IPO allocations, but small enough to remain nimble. Our 28-person team makes decisions faster than bureaucratic competitors, while our IDR 5.2 trillion AUM gives us market credibility. Long-Term Orientation Our client base includes family offices and pension funds with 10+ year time horizons. This patient capital allows us to ignore short-term volatility and focus on long-term value creation. We don't face monthly redemption pressures that force suboptimal selling. 7. Looking Ahead: 2025 and Beyond As we enter 2025, we're optimistic about Indonesian equities and our ability to generate alpha: Market Opportunity ● Post-election policy clarity providing investment certainty ● BI rate cuts (6.0% → 5.5% expected) supporting equity valuations ● Technology sector consolidation creating winners ● Infrastructure investment cycle accelerating under new government Firm Priorities ● Expand analyst team by 3 in Q4 2025 (healthcare, materials focus) ● Pilot n8n automation for research workflows ● Launch quarterly webinars for clients (starting Q2 2025) ● Achieve IDR 6 trillion AUM by end of 2025 Investment Focus ● Banking sector overweight (rate cut beneficiaries) ● Technology sector selectivity (winners vs losers diverging) ● Consumer sector opportunistic (valuation attractive, fundamentals lagging) ● Infrastructure sector watchlist (policy visibility improving) For inquiries: PT Nusantara Capital Partners Pacific Century Place, SCBD Jakarta 12190, Indonesia Email: info@nusantaracapital.co.id Phone: +62 21 5797 3000 Metadata: { "doc_id": "001", "title": "Company Profile & Investment Philosophy", "doc_type": "corporate_governance", "department": "management", "date_created": "2025-01-15", "version": "3.0", "confidentiality": "internal", "last_updated": "2025-01-15", "pages": 3, "author": "Management Team" }