Ambit-Nikko JV aims to more than double domestic hedge fund AUM to around $80M in 2015

Ambit Investment Advisors, which is managing or sub advising three hedge funds investing in the country, is aiming to take the corpus of its domestically raised fund to Rs 500 crore ($81 million) by December, the firm said on Wednesday.

Its Ambit Alpha Fund had recently crossed the milestone of Rs 200 crore ($32.4 million) in assets under management (AUM) which touched Rs 220 crore ($36 million) last week.

“The fund has witnessed consistent and strong fund performance on a “risk adjusted basis”. Indeed, the volatility of the fund is one-third of the Nifty index whilst still delivering better returns,” Andrew Holland, CEO at Ambit Investment Advisors, said.

He claimed that the Alpha Fund is the single largest long-short AIF in India today.

This fund is registered under the new AIF norms of SEBI as a hedge fund. Ambit Alpha Fund was launched in June 2013 with an AUM of Rs 20 crore raised from Ambit Holdings and few High Networth Individuals (HNIs). The fund invests in Indian equities including derivatives using a long-short investment strategy.

The long-short investment strategy means taking long positions in stocks that are expected to increase in value and short positions in stocks that are expected to decrease in value.

The fund has a hurdle rate of 10 per cent per annum which is segregated into 2.4 per cent on a quarterly basis, for calculating returns for the investors.

Ambit Alpha provides two investment options whereby the first one includes a management fee of 1 per cent with 10 per cent of the profit shared after crossing the hurdle rate and the second includes zero management fee with 15 per cent of the profit to be shared.

It has been raised from HNIs, small institutional investors, corporate treasuries and family offices. Minimum ticket size for each investor is Rs 1 crore.

This is the second fund under Ambit Investment. The firm also advises Mauritius-based Ambit Frontier Fund which is an India dedicated offshore long-short equity hedge fund.

Ambit Investment Advisors Private Limited is a joint venture partnership between Ambit Holdings Private Limited and Nikko Asset Management Co. Ltd. India dedicated funds from both partners are managed and advised by the joint venture and currently it has total AUM of more than $100 million.

(Edited by Joby Puthuparampil Johnson)

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