Long-only AIFs generate upto 7.2℅ in September, beat Nifty
Long-short AIFs also deliver consistent performance in September
Category III Alternative Investment Funds (AIFs) have turned in a spirited performance in September. Among Cat-III products, Long-only AIFs, as usual, outperformed benchmarks amid a buoyant stock market. The best schemes generated 7.2℅ return, more than double of Nifty’s 2.8℅. In the Long-short segment, returns were more staid given that the schemes take directional bets. Let us take a look at how AIFs that share data with PMS-AIF world have performed.
Leading the long-only AIF pack in September was Carnelian Compounder – 1 with an impressive 7.2℅ gain. The closed-ended AIF was launched in May 2019. The AIF has a multi-cap, sector agnostic strategy, with an objective to generate sustainable alpha and compound capital over a long period of time through the MCO framework. Over last 1 year, it has given 69.8℅ gain and over last 2 years it has delivered 34.4℅ CAGR.
At second place is Roha Emerging Companies Fund with another stellar 7.1℅ gain in September. The AIF was launched in 2018. The strategy invests in the equity of quality and growth-oriented companies/ business, run by competent management and available at attractive valuations. Over the last 1 year, the AIF clocked 133℅ gains.
At the third slot was Alchemy Leaders of Tomorrow with 6.6℅ return in September. This AIF is focussed on investments in Listed Indian equities, Private Investment in Public Equity (“PIPES”) on listed Indian equities, and IPO and pre-IPO opportunities. The fund is market cap agnostic.
Other notable performers in this month were Monarch MNCL Capital Compounder Fund (up 5.8℅), Nippon India Equity Opportunity Series- 6 (up 5.7℅), SageOne Flagship Growth 1 Fund (up 5℅), Abakkus Emerging Opportunities Fund & Abakkus Growth Fund (both up 4.8℅).
Here is a look at long-only AIF performance in a tabulated format.
Long-short AIFs are another sub-category in the overall Cat-III AIF universe. This is a special segment, because successful management of long-short funds requires special skills and experience. Long-short portfolios are not restricted to a particular asset class and have two big advantages in the form of shorting and leverage. From an investor perspective, long-short AIFs offer a degree of consistency in returns that are not achieved in long-only peers. Hence, you may not see eye-popping returns in long-short funds.
In September 2021, notable long-short AIFs were Avendus Absolute Return Fund (up 2.6℅), Edelweiss Alternative Equity Scheme (up 2.3℅), TATA Equity Plus Absolute Returns Fund (up 1.8℅), Avendus Enhanced Return Fund-I and II.
Here is a look at long-short AIF performance in a tabulated format.