HSBC Shutters India Fund Due To Outflows

Feb 21 2013 | 2:17pm ET

Redemptions have motivated HSBC to shutter an India-focused hedge fund run by Sanjiv Duggal.

The India Alpha fund, launched in 2007, peaked asset-wise in 2008 at over $300 million. It was down to $85 million by December, reports Reuters.

And yet, the fund gained 26% in performance terms last year, compared to an average 10.3% gain for emerging markets hedge funds (and much lower gains by the hedge fund industry generally). Since inception—and despite down years like 2008, when it lost 26%—it is up 39%.

An HSBC spokesman told the news agency that Duggal and his team remain with the firm where they run Indian equity assets of $6 billion, including the flagship $3.8 billion HSBC GIF Indian Equity fund.

According to HSBC, the decision to close the fund was based on an analysis of assets under management, profitability, sales interest, commitment and scalability.

"The HSBC India Alpha fund was reviewed in light of this to determine the extent to which the fund is aligned with the broader business strategy and it was concluded we would close the fund as it did not meet our criteria going forward,” the spokesman told Reuters.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of