Investment Philosophy
Avendus Capital’s Absolute Return Fund aims to produce absolute returns with low volatility, across different market scenarios. This portfolio has a low correlation with conventional asset classes.
Key Aspects of Long Ideas
- Fundamental Parameters: Robust Business Model, Corporate governance, earnings and balance sheet quality, and valuation pattern
- Thematic Parameters: Changing consumer behaviour, market leadership, regulatory and tech changes and structural sectoral changes
- Technical Parameters: Market-cap, institutional holding, liquidity, technical charts, event-driven, and tactical trades
Key Aspects of Sell Ideas
- Catalyst: technical factors, management changes, financial reporting
- Structural positioning: weak competitive position, structurally endangered and markets, political risk, and corporate governance
- Valuation: trading on premium multiples, and share price above target price
- Market Capitalizations: > Rs 750Crs.
- Key Company Features: Filter out businesses which may not create EVA on a sustainable basis, with a global presence in B2C, conglomerates, global commodities, ESG issues, PSUs, difficult to understand, and not scalable
Risk Management
- Gross Exposure: Max 200%
- Long and short position: Max 10%
- Long only- Stop loss limits: 20% Review limit
- Review: 4% daily and 10% monthly loss review limit
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Avendus Absolute Return Fund AIF |
Performance as of: 31-Jan-25 | Inception Date: 10-Mar-17
Fund Managers
Fee Structure
| Fee Structure | Fee |
|---|---|
| Fixed Fee Structure | |
| Variable Fee Structures | 1% fixed + 15% above 8% hurdle |
| Exit Fees | Nil |
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