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

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...