CapVeda launches India’s first market neutral fund

October 1, 2010 admin India Focus 0

Source:  http://www.capveda.com/admin/mediafiles/Ignites%20Asia-%2027Sept2010.pdf
CapVeda India Advisory, a Mumbai-based hedge fund advisory company, has launched its first Emerging India Fund
earlier this year, using what it describes as more sophisticated strategies to attract global investors.
Ashwani Singh, joint managing director of CapVeda, says its Emerging India Fund is the first market neutral hedge fund
investing Indian equities, which derives its alpha from market volatility and inefficiencies.
The name CapVeda is inspired by the venerable Indian Vedas, which are believed to be the root of mathematics. The fund
is based on an algorithmic trading model, which use automated trading signals based on the proprietary formula built on
certain mathematical models.
The fund applies multi-strategies. Usually, it has an allocation of 40% to 50% to relative value, 30% to 40% to system
trades, 15% to 20% to volatility arbitrage and 10% to 15% to miscellaneous arbitrage. These allocations can vary up to
5% and 10% as and when risk changes in each market.

CapVeda India Advisory, a Mumbai-based hedge fund advisory company, has launched its first Emerging India Fundearlier this year, using what it describes as more sophisticated strategies to attract global investors.Ashwani Singh, joint managing director of CapVeda, says its Emerging India Fund is the first market neutral hedge fundinvesting Indian equities, which derives its alpha from market volatility and inefficiencies.The name CapVeda is inspired by the venerable Indian Vedas, which are believed to be the root of mathematics. The fundis based on an algorithmic trading model, which use automated trading signals based on the proprietary formula built oncertain mathematical models.The fund applies multi-strategies. Usually, it has an allocation of 40% to 50% to relative value, 30% to 40% to systemtrades, 15% to 20% to volatility arbitrage and 10% to 15% to miscellaneous arbitrage. These allocations can vary up to5% and 10% as and when risk changes in each market.