New India hedge fund focuses on consumer names

A newly-launched India focused fund has placed itself in a sweet spot by applying a strategies that are rare in that particular market, namely, factor-based systematic and market neutral

The Elysium India Fund, managed by Mumbai-based Elysium Investment Advisors LLP, is an India focused, systematic, equity investment fund with the option of long-only and market neutral share classes. It has a long to medium term investment horizon and is designed to be highly liquid, well diversified and comprising high quality companies.

The Mauritius-domiciled fund was launched in August, but the strategy was started in December 2013 with managed accounts

The only factor-based systematic manager investing in the Indian market

"We are the only factor-based systematic manager investing in the Indian market," fund manager Vineet Sachdeva tells Opalesque. "We are probably the only market-neutral fund in India - by market neutral, we mean that we have very low net (<10%). There are a few long/short funds in India, but they usually have net long or short positions which are much larger and therfore not truly market-neutral.

In the factor-based strategy, the manager looks at long-term history of fundamental factors, such as return on assets, return on equity, operating cash flows, dividends, growth, etc. Then all these factors are fed into Elysium's own proprietary models. The model assigns weights to the factors and these in turn get translated into portfolio holdings. The models were built using four investment themes: (1) longterm profitability of companies and allied factors; (2) growth; (3) genuine quality growers and secondary factors such as growth momentum; and (4) high quality dividend growers.

"We use these factors ......................

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This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.