Diviniti Equity Long Short

Our view on the fund, the AMC, the strategy, the performance & the investment team.

IME's Review of Diviniti Equity Long Short

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View on the Fund

Diviniti Equity Long–Short stands out as one of the more compelling options within the SIF space, backed by a group with an actively managed long–short AIF and a highly pedigreed long–short fund manager. This strengthens the credibility of the strategy. Given the large range of net exposure in this strategy, we recommend this to investors with a high risk appetite based on ITI's AIF track record (Long Short Equity Fund). However, given that the SIF structure itself is still relatively new and lacks a meaningful track record, we maintain a neutral stance as dynamics of the structure get ironed out.

Strategy

Long Biased Long Short Approach

Fund's Strategy View

Diviniti Equity Long–Short is an equity long–short strategy structured across four investment buckets: - **Long Exposure:** 80-100% (core equity exposure), which includes strategic longs (55%) and tactical longs (0-40%) - **Tactical Short:** 0-25% (used selectively alpha generation during bearish stance) - **Hedge:** 0-55% (100% of strategic long exposure) - **Fixed Income:** 5–20% Net exposure can range from -25% to 95%. This allows the fund to be highly flexible during various market conditions.

Fund Performance

The funds aim to use shorts tactically to reduce portfolio volatility, downside protection during turbulent market conditions. Consistent ability to take such calls is key for low volatility returns over time.

Trailing Performance

1yr3yr5yrSince Inception
Diviniti Equity Long Short

Performance as of: 31-Jan-26 | Inception Date: 01-Nov-25 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.

Investment team

Rajesh Bhatia | 4-star rated FM

MD & CIO | 21 yrs Experience | 9 yrs at current firm

Past Experience: CIO (Simto Investment Company), MD & CIO (ProAlpha Systematic Capital), MD & CIO (Heritage India Advisors), SVP and Head of PMS (Reliance Capital)

Rajesh Bhatia has 14 years of experience in alternative investments (Long-short). Prior to ITI Long Short, Rajesh had held the CIO position across different funds such as Simto Investments (a subsidiary of Tata Investments), Heritage India Advisors (Indian advisor to New York-based Heritage Capital, an Indian Long-short equity fund). He was also the SVP and Head of PMS at Reliance Capital at the beginning of his career. Rajesh Bhatia is a commerce graduate from HR College, and has also completed the CFA program conducted by the CFA Institute, USA.

Laukik Bagwe | 3-star rated FM

CIO (SIF) | 26 yrs Experience | 0 yrs at current firm

Past Experience: DSP (VP)

Laukik Bagwe brings over 25 years of experience in fund and portfolio management across fixed-income markets, with specialization in money markets, government securities, and corporate bonds. He previously served as Vice President at DSP Asset Managers Private Limited and earlier worked as Senior Dealer at Derivium Securities India Private Limited. He will serve as the Chief Investment Officer (CIO) for the Diviniti SIF, leveraging his deep expertise across asset classes and investment strategies.

IME's Review of Diviniti SIF (ITI)

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View on AMC

We maintain a neutral stance on the SIF arm of ITI Group. While the SIF structure provides access to more sophisticated and differentiated investment strategies, it remains relatively new and lacks a meaningful track record, warranting caution given the higher complexity and risks involved. We do acknowledge the strong long–short capabilities of Rajesh Bhatia, who has demonstrated superior downside protection compared to peers during major market stress periods such as the IL&FS crisis and the COVID-19 correction. As such, investors seeking advanced strategies may consider the offering, while being mindful of its limited operating history and key-person dependence

AMC's Pedigree

Diviniti SIF is housed within ITI Mutual Fund, part of the broader ITI Group, which has a long operating presence across asset management, capital markets, and financial services in India. While the SIF platform itself is new, its credibility is anchored in ITI AMC’s experience of building regulated investment products, scaling distribution and operations, and managing public-market strategies through multiple market phases.

AMC Team

The investment team is led by Rajesh Bhatia, Group CIO, and Laukik Bagwe, CIO for the SIF platform. Rajesh Bhatia brings over three decades of investment experience, including prior long–short capabilities, and currently manages the ITI Long–Short AIF. Laukik Bagwe brings over 25 years of experience as a fixed-income specialist, with prior experience at DSP AMC.

Investment Philosophy

Diviniti 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

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