Absolute Return Fund
A regime-aware long-short derivatives strategy on Indian listed equities — designed to systematically capture large directional moves at sentimental extremes while sitting out sideways choppiness. Open to Indian investors via SEBI AIF and to global investors via GIFT City.
Fund Overview
Enter at peak fear. Exit at peak greed.
In this long-short fund we wait for sentimental extremes to build up, then act decisively with concentrated directional positions. At peak fear we go long. At peak greed we go short or move to cash. In between, we sit out sideways choppiness entirely.
The strategy trades in the Indian listed futures universe by creating a composite model based on multiple factors which identifies the regime before each trade. The result is a portfolio with low beta (0.33 full-period), strong convexity, and returns that are structurally uncorrelated to traditional long-only equity.
Long-Short
2 Cat III AIFs — India & GIFT City
Indian Listed Futures
Quant + Discretion
July 2026
Indians & Global
10-year backtested model results.
With minimal leverage and inclusive of transaction costs NAV grows from 100 to 3,505 over 10 years.
41.7%
Net CAGR
Compounded Annual Growth Rate over 10 years
2.6
Sharpe Ratio
Risk-adjusted return — well above industry benchmarks
16.4%
Annual Volatility
Lower volatility than most long-only equity funds
15%
Max Drawdown
Full-period beta to NIFTY 500
Ready to invest in the Absolute Return Fund?
Request the investor deck and speak to our team about onboarding.
Why invest in the Absolute Returns Fund
Three reasons the Absolute Return Fund belongs alongside long-only equity in a sophisticated investor's portfolio.
Returns in Both Directions
A long-only portfolio only makes money when markets go up. This strategy is built to capture directional moves in both directions — profiting from the full bull run on the long side and from market corrections on the short side. The 10-year backtest includes years where markets fell sharply, and the model still delivered positive returns.
Structural Diversification
With a full-period beta of 0.33 and a near-zero to negative beta during corrections, the Absolute Return Fund provides genuine diversification that a second long-only fund cannot. It earns returns when long-only strategies struggle — making it a natural complement to the India Long-Only Fund in the same portfolio.
Asymmetric Payoff Profile
The strategy does not trades frequently targeting deep dislocations with asymmetric payoffs. The worst year in the 10-year backtest was -5.3% and the best year was +97.4%. A Sharpe ratio of 2.6 reflects exceptional risk-adjusted performance relative to the return generated.
Fund Documents
Access detailed insights, performance reports, and strategy documents for this fund.
Absolute Returns Fund
Fund strategy & thesis
PDF • 1.1 MB
Invest in absolute returns.
Request the investor deck, model details and onboarding information from our team.
