B C P C A P I T A L

Strategy

Equity Hedge Funds

The overall strategy of equity hedge fund on establishing a long position in undervalued equity and short position in overvalued equity. The mix of long and short positions determines the amount of systematic market risk exposure for the equity hedge fund stategy.


Subcategory of Equity Hedge Funds

Short-Bias Hedge Fund :

The biggest distinction between short bias hedge fund and long short hedge fund is that short bias hedge fund maintain net short exposure to market risk. Further more,the value of this funds is in their ability to provide downside protection in declining market.

Equity Long Short Hedge Fund :

Equity long short strategies typically have a net long position and consist of long stock positions combined with a short position. The short position is composed of either short stock positions or short positions in the market created with index options or futures.

Equity Neutral Hedge Fund :

Equity neutral hedge fund attempt to creat neutrality or zero beta exposure to market risk. Thus, the funds are designed not to move with or against the market. This fund also exhibit variance neutrality. Variance neutrality refers to a fund with returns that are uncorrelated with changes in market risk, including crisis situation.

Ticket Value :

Equity Hedge Fund relative value investing consists of a core holding of long equities hedged at all times with short sales of stocks and/or stock index options. The underlying concept is that a hedge fund manager is purchasing a security that is expected to appreciate, while simultaneously selling short a related security that is expected to depreciate. Related securities can be the stock and bond of a specific company; the stocks of two different companies in the same sector; or two bonds issued by the same company with different maturity dates.

  • Minimum Ticket Size - INR 1 Cr
  • Tentative ROI- 20 - 22%

Fee Structure


☛ 2% AMC (Annual Maintenance Charges) on the Total Investments.

☛ Extra charge of 10% applicable if the return goes above the committed (Return on Investment.)