Alta Cura AI Absolute Return Fund AIF

Strategy Aim

• Equity-like returns: Aim to generate gross returns of 15%+
• Debt-plus risk: Aim for zero negative returns in any year
• Market Uncorrelated returns: Aim to generate positive returns across bull, bear and sideways markets

4 Investment Buckets

C1 Liquid/Liquid-like investments

Invest in very low-risk debt investments (bank FDs, debt MFs, government securities). This generates a low-risk fixed income return AND can be used as margins for market-neutral strategies in C2,C3,C4 buckets that help boost returns. 

C2 Market-neutral arbitrage-like strategies

Invest in market-neutral arbitrage-like option trading strategies (calendar spread, time decay, vol dispersions), to take advantage of pricing discrepancies of different options with the same underlying .

C3 Long-short portfolio

Buy stocks that are expected to move up and sell stocks that are expected to move down (based on AI algorithm). The strategy may be executed via futures or options, based on the market outlook. The aim is to have low net exposures to the overall market. 

C4 AI & ML based bi-directional strategies

AI model assigns an outlook to the market (positive, stable or negative). On the basis of this a hedged F&O trading strategy is executed, that delivers alpha in that market environment.  Investment Bucket Allocation C1 is typically fully invested (as this generates a stable return and provides margins for the other buckets). The allocation to other buckets are driven based on the AI-algo driven market outlook. Typically not more than 40% of the portfolio will be allocated to a single bucket in C2, C3 & C4.

Artificial Intelligence & Machine Learning based Algorithm

AI Backed GQVM Model (stock selection)

AI Algorithm, built on deep data science, ranks all companies in BSE-100 based on GQVM indicators (Growth, Quality, Valuation, Momentum). These rankings help construct both the long & short portfolios. 

AI Backed MVLM Model (market outlook)

AI Algorithm, that takes into account Momentum, Valuations & Market Liquidity (MVML) indicators to develop an outlook for the markets (positive, stable, negative).  Strong Artificial Intelligence & Machine Learning based algorithms The algorithms that signal the most profitable absolute return strategies, are developed based on a large number of indicators and use deep data science & machine learning technologies to continously improve the predictive power of these algorithms. Credible Team behind the algorithms Raman Nagpal has a Masters in Computer Science and has worked in data science at Adobe, prior to setting up Accuracap along with Naresh Gupta. The AI-based algorithms have demonstrated consistent outperformance at the long-only strategies at Accuracap over more than a decade, and these proven algorithms have been tweaked to deliver absolute returns. Still early days of the fund maturity While the foundation of Alta Cura's algorithms, come from proven AI algorithms at Accuracap, the adaption of these algos to a more trading heavy absolute return strategy are still in early days. The longer-term track record of these algorithms across different market conditions are still to be established.