AMC Background

Estee is a quantitatively driven investment management firm founded in 2008, coinciding with the introduction of algorithmic trading in Indian capital markets. The firm operates across asset management, proprietary trading, and execution services, with presence in both India and the US. Over time, Estee has built one of the more institutionally scaled quant platforms in India, employing over 90 professionals across quantitative research, technology, execution, risk, and operations. The firm is a long-standing participant in market-neutral and arbitrage strategies and runs one of the largest arbitrage books in India by trading volumes, supported by a low-latency, co-located execution infrastructure across NSE, BSE, and MCX. The AMC has a seasoned board and advisory panel comprising former global asset managers, senior Temasek executives, and leaders from large proprietary trading and hedge fund platforms

Investment Philosophy

Estee’s investment philosophy is rooted in the belief that consistent alpha in liquid markets is best generated through systematic, rule-based processes that minimise human discretion and exploit repeatable statistical inefficiencies. The firm applies quantitative models across arbitrage, long-only, and long-short strategies, combining large-scale data analysis, factor-based signals, and regime-aware optimisation to construct portfolios with tightly controlled risk characteristics.

Quantitative and Systematic Orientation

• Investment decisions are driven by automated models rather than discretionary views, reducing behavioural biases and emotional decision-making.
• Opportunities are identified through continuous scanning of market data, with thousands of securities and pricing relationships evaluated per second.
• Extensive back-testing and out-of-sample validation over long historical periods are used to establish statistical robustness before live deployment.

Focus on Market Neutrality and Controlled Exposure

• Core strategies, particularly I-Alpha, are designed to be market neutral or near-neutral, capturing mispricing through hedged arbitrage rather than directional bets.
• Returns are intended to be driven by pricing inefficiencies and execution quality, with limited dependence on overall market direction.
• In directional strategies such as Long Alpha and Long-Short, exposure is explicitly budgeted and dynamically adjusted based on model signals and regime indicators.

Multi-Layered Risk Management

• Fund-level controls: In-built algorithmic limits governing exposure, leverage, and concentration, with continuous monitoring.
• Strategy-level controls: Explicit exposure and daily stop-loss budgets defined for each strategy.
• Operational controls: Daily reconciliation across brokers, clearing members, and custodians, with exception reporting to senior management.

Technology and Execution as a Source of Edge

• Proprietary low-latency execution infrastructure co-located with major exchanges, enabling rapid and cost-efficient trade execution.
• Smart order routing and market-making capabilities that allow exploitation of small spreads at scale.
• Continuous post-trade analytics and feedback loops to refine models, improve execution efficiency, and adapt to evolving market microstructure.

Philosophy on Consistency and Capital Preservation

Across strategies, Estee prioritises consistency of returns, drawdown control, and capital preservation over aggressive return maximisation. The firm views disciplined process adherence, robust technology, and real-time risk management as central to delivering stable, risk-adjusted outcomes across market cycles, rather than reliance on episodic market views or discretionary timing calls .