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 7.2â„… return, more than double of Nifty’s 2.8â„…. 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 7.2â„… 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 69.8â„… gain and over last 2 years it has delivered 34.4â„… CAGR.
At second place is Roha Emerging Companies Fund with another stellar 7.1â„… 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 133â„… gains.
At the third slot was Alchemy Leaders of Tomorrow with 6.6â„… return in September. This AIF is focussed on investments in Listed Indian equities, Private Investment in Public Equity (â€œPIPESâ€) 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 5.8â„…), Nippon India Equity Opportunity Series- 6 (up 5.7â„…), SageOne Flagship Growth 1 Fund (up 5â„…), Abakkus Emerging Opportunities Fund & Abakkus Growth Fund (both up 4.8â„…).
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 2.6â„…), Edelweiss Alternative Equity Scheme (up 2.3â„…), TATA Equity Plus Absolute Returns Fund (up 1.8â„…), Avendus Enhanced Return Fund-I and II.
Here is a look at long-short AIF performance in a tabulated format.