Global Launches India-Focused Hedge Fund

Aug 27 2008 | 9:48am ET

Kuwait-based asset manager Global Investment House has recently launched an India-focused hedge fund.

According to the firm, the Mayur Hedge Fund is long/short absolute return growth-oriented fund with a net long bias. The fund, which is the firm’s first India-focused product, is targeting a 15-20% return.

“The Asian and in particular the Indian markets offer a compelling investment opportunity,” said Shailesh Dash, head of alternative investments at Global.

Dash believes that the investment case for India is powerful, especially given that the country is home to a quarter of the world’s population under the age of 25, has an emerging middle class, good corporate governance and an economy that doesn’t rely on foreign trade.

“The Mayur Hedge Fund is well positioned to effectively tap into these trends to the benefit of its investors,” added Dash.

India is already the fourth largest economy in the world in terms of purchasing power parity and is projected to be approximately 60% of the size of the U.S. economy by 2025.

Joseph Joseph, head of hedge funds at Global, stated that India’s highly educated and skilled middle class is growing, earning more, spending more, saving more and setting the stage for a long term consumer-driven boom. He added that there is a huge amount of wealth being created by entrepreneurs, many of whom control some of India’s biggest companies.

''India is an open economy and there is substantial potential for growth bolstered by foreign exchange inflows,” said Joseph. “However, the economy is not dependent on foreign money as it is underpinned by domestic institutional money such as domestic life insurance companies which are amongst the biggest investors at present.”

According to the firm, Global’s new hedge fund employs a bottom-up, fundamental approach, and will invest in small- to mid-cap Indian equities, and has the latitude to invest in large-cap stocks.

Joseph added that the fund aims to build and maintain a diversified portfolio of well researched exposures, and is capable of offering strong downside protection as well as upside gains by shorting equities and index strategies. 

The fund will be advised by the team in Global Investment House India, which is based in Mumbai and headed by Dileep Madgavkar, formerly chief investment officer of ICICI Prudential Asset Management. 


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