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Avendus Enhanced Return Fund 2 AIF

Scheme Rating

IME Scheme Rating

3 of 5 stars

Can consider investing: For investors seeking to participate in equity market upsides, but desire some level of active fund manager actions to reduce downsides during market corrections

IME Strategy Rating

4 of 5 stars

Long-Biased Long-short strategy: With a 70% exposure to long ideas, and a 30% exposure to the long-short strategy. Effectively, the strategy allows for a shift between 60% to 95% net long exposures, based on market conditions. This is broadly in-line with the risk-reward of an Aggressive Hybrid fund, with risk-adjusted returns being potentially superior if the fund managers get their market calls right.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

IME View on Avendus Enhanced Return Fund 2 AIF

Type: Long-bias LS | Long-bias LS | AUM ( cr) | Inc Date (01 Nov 2018)

Investment Strategy

Objective: generate superior returns to Nifty 50, while limiting downside

Investment Strategy

  • Long-Only (70-85% of portfolio): 15-25 high conviction stocks based on a proprietary screening model
  • Long-Short (15-30% of portfolio): tactical positions to enhance returns in strong markets and reduce downside in weak markets | exposures can range from -40% net short in bearish markets, 80% net long in bullish markets and 30% net long in range bound markets

Investment Process (Long Only stock selection)

  •  Screener driver: Screener run on BSE 200 to shortlist universe to 80 stocks > In-depth analysis of research team to identify 15-25 portfolio companies
  • Outside screener: 3-4 stocks (from BSE-500) can be included as turnaround or emerging themes 

Investment Process (Long Short Portfolio)

  • Invest in derivatives (stocks, Nifty, Bank Nifty)
  • Focus on absolute returns across market conditions (low correlation to underlying markets)

Trailing Performance

1yr 3yr 5yr Since Inception
Avendus Enhanced Return Fund 2 AIF

Performance as of: 30-Dec-99 | Inception Date: 01-Nov-18

Fund Managers

Andrew Holland | 5-star rated FM

CEO | 27 yrs Experience | 7 yrs at current firm

Past Experience: Ambit Investment Advisors (CEO & Hedge FM), DSP ML (Head of Resarch, Head of Proprietary Trading), Credit Suisse (Head of Research)

Andrew Holland is the most recognised long-short fund manager in India, with an impeccable track record with top-tier funds. Prior to joining Avendus in 2006, he built Ambit’s hedge fund into one of India’s most successful hedge funds, prior to which he managed a $1 bn+ proprietary book at DSL ML.

Nandik Mallik | 2-star rated FM

Sr Portfolio Manager | 17 yrs Experience | 7 yrs at current firm

Past Experience: Fund Manager (Edelweiss Capital), Commodities Investor Sales (Credit Suisse)

Nandik Mallik has 10 years of experience in Indian equity markets. Prior to ICICI Long Short, Nandik was a Fund Manager at Edelweiss Capital. Nandik has graduated from London Business School with MSc Finance and had also completed his MBA from IIM Calcutta in 2005.

Fee Structure

Fee StructureFee
Fixed Fee Structure2.5
Variable Fee Structures1.5% + 15% above Nifty50 benchmamrk
Exit Fees1yr(2%), 2yr(1%)

AMC

AMC: Avendus AIF (click link for detailed AMC review)

Highly recommended for investors seeking Debt+ Returns : For investors seeking absolute return long-short strategies, Avendus Capital AIF is amongst the best investment options, given the very high pedigree of their core founding & investment management team.

AMC Rating

5 of 5 stars

AMC Pedigree

5 of 5 stars

AMC Size

5 of 5 stars

Team Pedigree

5 of 5 stars

Inv Philosophy

5 of 5 stars

Performance

4 of 5 stars

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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.