Indian financial market has huge potential for the investment of hedge funds but the global hedge fund investment companies operate mostly from Singapore and Mauritius as they face difficulties with the taxes and regulatory measures in India.
The international hedge funds that had invested in India during the bull run of 2007 and 2008, all made good profits during 2008. Eureka Hedge had a return of more than 5% in the first 8 months of 2010 and a gain by 2% of the Sensex.
Most of the hedge funds that are investing in India invest on an average 68 % of their fund in the short long equity strategy with an overall 70% investment in equity. So the hedge funds are playing an important role in Indian equity market.
There were many hedge fund investors like, Halbis, Q-India, Baer Capital, and Insynergy that outperformed the Sensex. Still some of the hedge funds have become cautious recently like Eureka Hedge has reduced their proportion of strategy on long – short has brought down to 68% from previous 80% in 2008-09.
The analysts are of opinion that the Hedge Fund managements complex investment strategies of 2008 did not succeeded, the result of such failed strategy have made them defensive. If they can show good results many more global hedge funds will select India as their destination.
The UK based famous Hedge Fund giant Man Group for the first time has decided to invest 1% of its total fund (Total fund value is $15.00 billion, of which 10 to 15 % is allocated for emerging markets) in India.
List Of 24 Best Hedge Funds in India
1. Hudson Fairfax Group (HFG): Pvt Equity
2. Avatar Investment Management (AIM): Pvt Equity,
3. India Deep Value Fund: Cap Mkts and Rl Estate
4. Heritage Capital India: Short Long Equity
5. Fair Value Capital: Event & Traditional Approach on Investment
6. India Capital Fund: Multi- purpose strategy
7. Monsoon Capital: Investments in Indian Equities
8. Karma Capital Investments in Indian Equities
9. Atyant Capital Precious Metals and Indian Equities
10. Atlantis Asset Management: Asian Hedge Fund
11. Baer Capital Partners: Investments in Pvt Equity
12. Brahma Capital: Multi Asset Mgmt
13. Eight Capital: Substitute Investment policies
14. EM Capital Mgmt: Developing Markets
15. Evolvence Capital: Substitute Investments
16. Fulcrum Investment Group: Alternative Investments (LLC)
17. Greenwich Advisor: Varied Indian market
18. Helios Capital Managements: Short Long Equity
19. World Quant: Varieties of strategy
20. Jina Ventures: Pvt Eqty,
21. Och-Ziff: Substitute Investment
22. Sandstone Capital Equity Investments
23. Absolute India Fund (AIF)
24. HFG India Continuum Fund
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