Desai Capital Management, Inc.

The firm is a state-registered investment adviser seeking to take on clients who meet its financial-knowledge and risk-tolerance requirements. It offers active management of the equity portion of client portfolios, limited to domestic and international equities (including ADR/ADS and some OTC issues), preferred stock, equity call/put options, and publicly traded mutual funds/ETFs, with a stated account minimum of $25,000 and no assets under management at the time of the brochure.

The firm describes an absolute-return, concentrated value approach that limits portfolios to no more than 30 positions (typically 10–20) and emphasizes low relative valuation metrics and historical price discounts. Investment analysis relies on fundamental valuation models (e.g., discounted cash flow and comparable company analysis) and may use options both for hedging and, for certain risk-seeking clients, as primary exposures; ETFs are used selectively and generally capped at 5% of an account at the time of purchase.

Distinctive features in the brochure include a fee structure combining a periodic asset-based charge (assessed quarterly) with a 10% annual performance fee on absolute gains calculated using the highest year-end balance since inception and no clawback provision. The advisory is run by a sole employee who is a CFA charterholder with buy-side equity research experience, does not take custody of client assets but requires documented discretionary trading authority, and reported no revenues or clients at the initial filing.