View on the Fund

- **Tax-efficient fixed-income fund:** Altiva Hybrid Long Short falls under the a fixed-income-plus category, aiming to generate tax-efficient fixed-income returns. The majority of the strategy (80%+ allocation) is invested in a combination of fixed income & arbitrage opportunities (similar to the fixed-income + arbitrage MF strategies), with the ability to boost returns using limited exposure to higher risk-return special situation (max 10% exposure) & derivative-based strategies (max 10% exposure). - **Decent Alternative to Arbitrage:** The strategy is a decent alternative for Arbitrage funds - seeking to boost returns over Arbitrage by taking some limited levels of incremental risks (limited to 20% of portfolio). While our preferred approach is to wait for SIFs to mature to see the strategy and performance to stabalise over time, we believe that investors can still consider this fund in the context of (a) complex derivative based strategies limited to only 20% of portfolio (b) potential ability of the AMC to leverage some of the strong pedigree of the larger Edelweiss group in this category.

Strategy

Steady Income with Controlled Volatility

Fund's Strategy View

The fund follows a hybrid long-short framework designed to generate consistent income with controlled volatility, rather than directional market returns. At its core, the strategy allocates capital to arbitrage and fixed-income instruments (60-100%) to provide stable, accrual-like returns, while layering in select return enhancers through special situations and derivatives (10-30%). The risk management framework is defined with single stock limits, sector limits and stop loss execution.

Fund Performance

We refrain from evaluating the fund since it is yet to mature (less than 5 years).

View on AMC

We maintain a neutral stance on the SIF arm of Edelweiss Mutual Fund. While the SIF structure offers access to more sophisticated investment products, it remains relatively new and lacks a meaningful track record to fully assess its effectiveness. As such, investors should be mindful of the higher complexity and risks involved. That said, investors specifically seeking advanced or differentiated strategies may consider this AMC, while acknowledging the limited operating history of the SIF platform

AMC's Pedigree

Altiva SIF operates within Edelweiss Mutual Fund. While Edelweiss MF has limited experience of managing complex derivative-based strategies, at the group level Edelweiss is considered one of the pioneers and most-pedigreed financial institutions in terms of managing complex derivative strategies. While skills do not automatically cross seperate corporate entities, there are some clear synergies that can be utilised. While the SIF platform itself is new, its credibility is underpinned by Edelweiss’ established experience and institutional depth in asset management.

AMC Team

Altiva’s investment team closely mirrors the mutual fund setup, with Dhawal Dalal, CIO - Fixed Income, overseeing the debt component, while the passive investment team currently manages the equity and derivatives exposure. As Altiva SIF is still in its early phase, we expect the team and coverage to expand as additional strategies are launched. That said, the current setup is supported by professionals with decades of cumulative investment experience

Investment Philosophy

Altiva SIF does not adhere to a single overarching investment philosophy at the AMC level, instead employing frameworks designed on a strategy-specific basis. Given that the SIF platform is still new, the AMC is in the process of establishing and refining its operating and investment frameworks within this structure