Kuwait-based Global Investment House (GIH) has launched Mayur Hedge Fund, an India-focused long/short absolute return growth oriented fund with a net long bias. The fund aims to achieve capital growth and provide investors the opportunity to benefit from the long term growth of the Indian market. Though GIH has been active in India, this would be its first direct India-focused product. Though the size of the fund has not been disclosed, it will be headed by headed by Dileep Madgavkar, formerly CIO of ICICI Prudential Asset Management. Mayur Hedge Fund follows the the launch of a similar fund by Dubai-based Baer Capital Partners, whose size is estimated to be $250 million.
Joseph Joseph, Head of Hedge Funds at GIH said that the fund employs a bottom-up and fundamental approach. The fund will invest in small to medium capitalization equities, but will also invest in large capitalization stocks also. As To protect against overvaluations, the fund will have a short position with net long exposure of a minimum of 25% to a maximum of 75%. There will be no exit fee charged on the fund and will target a return of 15-20%. The fund is upbeat on investing in infrastructure segment and derivatives market in India.
GIH has been investing in India since 2006 and has so far committed a capital of $100 million. Its private equity arm has invested $5 million in Mumbai-based Reach (Cargo Movers) Pvt. Ltd. GIH has also bought prime land in Navi Mumbai to build a five star international business hotel.
