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Opalesque Exclusive: Veda makes case for India with launch of fund of funds Kirsten Bischoff, Opalesque New York: Newly formed NY-based Veda Asset Management will be launching a $10-$20 m India focused, multi-strategy fund of funds in July 2008. Opalesque recently had a chance to speak with Veda co-founder Ridaa Murad, about the India markets and how Veda will look to provide access to India “best of breed” managers across asset classes.

Poking holes in the dislocation theory Although hedge fund performance in India has been down in 2008, Murad points out the historic nature of India market corrections and their link to concurrent movements in the US and other developed global markets. “I don’t believe you can have dislocated economy in a globalised world. These are inconsistent ideas. I believe you are going to see, selloffs in India happen around global selloffs. The big flows of money globally are coming from the same pools of capital. If the US becomes costly – the money goes to India and if India becomes costly the money goes elsewhere and so on. Given that scenario, every time the US sells off you see an automatic withdrawal in India, with investors naturally taking more off the table from their perceived higher risk allocations. And if you look back when the correction takes place it tends to correct better than it does in other places. So every time you see a big correction in India ......................

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