Mon, Jan 20, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

India-focused hedge funds are lagging in performance because of lack in shorting opportunities

Tuesday, October 27, 2015

Komfie Manalo, Opalesque Asia:

The lack of shorting opportunity in India has left India-focused hedge funds at the mercy of the stock market. Indeed, latest data from Singapore-based Eurekahedge said that India hedge funds posted the third-lowest returns in the Asia-Pacific region in the first nine months of 2015 gaining only 3.22%, following a 39% rise in 2014.

A report by Bloomberg showed that the sudden reversal of fortune of Indian hedge funds highlights the risks faced by hedge fund managers who seek to profit in both a bull and bear markets. It added that hedge funds in India are tracking the local stocks more closely than in any of the world’s major markets. And the trend is expected to linger because of the lack of opportunity to profit with falling equities and selling shares short.

Sumeet Nagar, a Mumbai-based managing director of the $250m Malabar India Fund managed by Malabar Investment Advisors said, "Shorting is a very important tool for an investor. But the set of opportunities is limited, so the criticism is valid that you don’t have that many short options in India."

Publicly-listed stocks on the Bombay Stock Exchange were traded on average 59,000 times per day over the past 100 days. The fi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing: For Howard Marks, investing is like a game, Hedge fund Lone Pine Capital LLC takes big stake in Under Armour, Merit Medical shares rise after hedge fund Starboard discloses 9% stake[more]

    For Howard Marks, investing is like a game From Institutional Investor: Investors can take apply lessons from games like backgammon and poker to their day jobs, according to Oaktree Capital Management's Howard Marks. Marks - who has enjoyed pursuits like Old Maid and gin rummy since

  2. Siguler Guff closes Small Buyout Opportunities Fund IV at $1.58bn[more]

    Laxman Pai, Opalesque Asia: Private investment firm Siguler Guff & Co. has raised $1.58bn for a fourth fund - Small Buyout Opportunities Fund IV - to invest with small buyout managers and directly in their portfolio companies. The New York-based multi-strategy private equity investment firm

  3. J.P. Morgan makes strategic investment in tech company for alternatives[more]

    Laxman Pai, Opalesque Asia: J.P. Morgan has taken an equity stake in Arcesium, an investment-management technology business that D.E. Shaw & Co. launched as an independent company in 2015. New York-based Arcesium LLC is an investment management technology and services firm, offering services i

  4. People: Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud, Swiss investment boutique appoints CIO & CCO[more]

    Hedge fund godfather Lord Fink to chair HSBC backed tech start-up Bud From Standard: Hedge fund tycoon Lord Fink has been named chairman of bank software start-up Bud, which is backed by HSBC and Goldman Sachs. Fink, dubbed the "Godfather of hedge funds" for his role at Man Group, inves

  5. Legal: Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges, Partners Group sued over alleged breach of non-disclosure agreements[more]

    Hedge-fund Felon hid criminal past to woo crypto investors, U.S. charges From Bloomberg: A Toronto man who served time in prison after his hedge fund collapsed later concealed his identity and criminal past to defraud investors of $30 million through an initial coin offering of digital