Investment Strategies with Absolute Return
- Investment may be across multiple asset classes, geographies and strategies.
- May use linear as well as non-linear instruments to build portfolios consisting of directional, market-neutral and relative-value strategies.
- Pursuing a well-diversified, multi-strategy arbitrage investment program that, while largely invested in multiple arbitrage strategies like
- Securities/Commodities/Forex Arbitrage on multiple global exchanges.
- Vanilla arbitrage strategies like Conversion Reversal/Box/Cash Future Arbitrage
- GDRs & ADRs versus local securities.
- Special situations arbitrage, fixed income instruments, convertibles, foreign currency, convertible bonds, derivatives, money market instruments, contracts for differences (CFD), total return swaps, IPOs and pre-IPO opportunities.
Investment Process
- Identifying macro-economic catalysts such as policy and regulatory changes, demand-supply dislocations and so on.
- Geographies, assets classes, sectors and industries that will be most significantly impacted by above catalysts are then filtered using fundamental and demand-supply studies.
- Identify the most efficient way of setting up the trade that captures the opportunity.
- CORE - central tier that has long-term strategic holdings,
- DYNAMIC - secondary tier that has tactical positions, and
- MOMENTUM - tertiary tier that has medium-term trades, or one or more of the above as illustrated in the diagram.
The portfolio may be constructed with:
