Monsoon Flagship Has Best Month Ever

Nov 5 2007 | 10:30am ET

Monsoon Capital’s flagship India Inflection Fund ended October with a bang, recording its biggest gains since it launched almost three years ago. The $1.2 billion hedge fund returned an estimated 21.9% last month, bringing its year-to-date return to 65.6%. By contrast, the BSE Mid Cap Index—which covers the Bombay Stock Exchange in Mumbai, India—is up 57.6% year-to-date.

The fund invests in the Indian small- to mid-cap space through a private equity-like process, with up to 10% of assets invested in p.e. deals and 30% are in private investment in public equity transactions. Its performance was driven by strong price performance in its top holdings, according to managing director Gautam Prakash. “In fact, five of our top 10 names were each up over 20% for the month,” Prakash wrote in his latest investor letter.

For example, a textile concern in the fund’s portfolio saw revenues grow by 120%, tripling its profits from a year ago. “These results stunned analysts given the strong headwinds (rupee appreciation and intense competition by lower cost countries) faced by the garment textiles industry,” Prakash wrote. “In fact, most competitors, including those backed by some other private equity and hedge funds, reported weak numbers: Gokaldas Exports reported a 50% drop in profits while Celebrity Fashions reported revenue growth of only 30% and negative profits.”

The firm recently reopened the flagship offering in an effort to garner an additional US$200 million in assets, after which it will again close its doors to new investors.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…