Home / Companies / News /  Estee Advisors launches category III fund AIF, aims to raise 200 crore

Estee Advisors Pvt Ltd, a quant-driven investment management company, has launched Enhanced Alpha Fund, a Category III contemporary alternative investment fund (AIF). The fund allows investors to participate in the long-term appreciation of equities while providing a hedge through market neutral allocation.

The company is aiming to raise 200 crore by the financial year-end.

AIFs employ diverse or complex trading strategies and may employ leverage, including through investment in listed or unlisted derivatives. Various types of funds such as hedge funds, Private Investment in Public Equity (PIPE) Funds, etc. are registered as Category III AIFs.

The majority of allocation (70%) will be towards long-only equities. The strategy for the long-only part is similar to current Estee’s PMS, which has outperformed the index by a CAGR of 17% since May 2019 when it had a major revamp.

The rest 30% would be allocated to market neutral strategy, which is uncorrelated to equity markets and is an absolute return strategy.

According to the PMS, the ‘long-only portfolio’ (long alpha) will target excess return over the Indian benchmark Nifty 50 index, participating in the upside bull run.

At the same time, the ‘market neutral portfolio’ will seek to generate an absolute return regardless of the direction of the market so as to provide a boost to the returns in an up market and a hedge in a down market scenario.

This fund’s strategy is based on more than 130 factors that have been developed over the years. These factors are a combination of fundamentals, technical and macro-economic factors.

Speaking on the launch, Sandeep Tyagi, founder and chief executive officer, Estee Advisors said, “With the launch of AIF, we move a step closer to realizing our dream of offering investment solutions to all categories of investors, right from Gulaq portfolios (Brain Child of Estee Advisors) for retail investors, to PMS & AIFs for large, sophisticated investors. The key differentiator in all these products is the quant drive approach in which we take great pride being the market leaders."

Estee is a Sebi-registered PMS, investment advisor and specialized broker and execution services provider catering exclusively to high-frequency traders and latency sensitive traders.

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