India

Edelweiss Wealth Management launches a long-short AIF Scheme

Edelweiss Wealth Management, today announced that it has launched an equity focused long-short Alternative Investment Fund (AIF) scheme - Edelweiss Dynamic Growth Equity [EDGE] Fund.

EDGE will invest primarily in instruments like cash equities, stock and index derivatives including futures and options.

The elevated volatility seen in the markets in the past year has resulted in sharp drawdowns and quick erosion of investor wealth garnered over the years. EDGE aims to address this challenge. The fund will follow a target-based investment approach and employ complementary strategies to smoothen returns across market cycles while limiting drawdowns during periods of extreme volatility. These strategies enable the fund to stay aligned to equity markets, capitalize on long and short side opportunities while harnessing the power of derivatives to generate alpha on the portfolio.

 

Mr. Nitin Jain, MD & CEO, Edelweiss Wealth Management said, “We believe it’s necessary to have a bifocal approach to investing in order to protect our portfolios against market volatility while generating wealth consistently over the long term. A long-short style of investing meets this requirement since it is a more active, bottom-up approach to investing with the added advantage of being able to go short on companies or indices during adverse market scenarios while maintaining low net exposure on the portfolio. EDGE offers this niche investing strategy and an excellent diversification proposition to investors in comparison to other options available for investments.”

 

EDGE is targeted at HNIs, Family Offices and Institutions. The portfolio is segregated into three strategies, each having defined allocations, return expectations and hedging policies. The fund has a minimum investment amount of INR 1 Cr with an expected corpus of around INR 1000 Cr. This includes a portfolio of about 15 to 20 core long term holdings, mix of long-short strategies and will follow systematic hedging practices. The fund will be managed by a team having extensive experience across asset classes in the Indian onshore market along with the ability to marry fundamental research with derivatives and will be a part of the investment management offering of Edelweiss Wealth Management.