InCred Alternative Investments, part of InCred Capital Financial Services Pvt Ltd, said Friday it has floated its first long-short fund that seeks to raise over Rs 1,000 crore ($122 million).
The InCred Liquid Alternative Fund - I is registered with the Securities and Exchange Board of India as a Category III alternative investment fund and aims to deliver “strong positive absolute returns with low risk” in all market conditions, the company said in a statement. Category III AIFs include hedge funds, per SEBI norms.
InCred Alternative said the fund will follow a multi-strategy quant approach that is designed to help “generate superior risk-adjusted returns and risk metrics” as compared to debt-plus funds and indices over the medium to long term.
The fund is led by Rishi Kohli, an industry veteran in the derivatives quantitative strategies market in India, the company said. Kohli is Managing Partner and CIO of hedge fund strategies at InCred Alternative.
The new fund will seek to generate alpha returns independent of market volatility and directionality. It intends to use long-short strategies across futures, options and special situations for diversification, InCred said.
Bhupinder Singh, founder and Group CEO of InCred, said the launch of the company’s first long-short fund will be followed by other quant strategies from the InCred stable.
“This is our first long-short fund based on a quantitative model-driven approach with a blend of futures long-short, relative value and index strategies across various time horizons - this combination of strategies is unique in the market,” said Kohli.