Estee Long Alpha
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Estee Long Alpha
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
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View on the Fund
Estee Long Alpha can be considered for investment option due to its proven expertise in quantitative investing, backed by a well-defined strategy, well defined investment philosophy, an experienced team, and a strong performance track record.
Strategy
Algorithm based Model
Fund's Strategy View
Estee Long Alpha employs a rule-based quantitative investment approach, constructing a dynamic multi-factor model that adapts to market conditions. Their strategy integrates factors such as momentum, value, quality, and low volatility, dynamically weighted to optimize performance. With a highly diversified portfolio of 80 stocks, Estee leverages 130+ micro-strategies, systematically selecting the best stocks through their advanced algorithm-driven model.
Fund Performance
The fund has outperformed peers & is amongst the top performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Estee Long Alpha | 5.73 | 23.96 | 22.09 | 19.57 |
| S&P BSE 500 | 6.5 | 15 | 15 | 0 |
| Alpha over Broad Mkt BM | -0.8 | 9 | 7.1 | 19.6 |
Performance as of: 31-Jan-26 | Inception Date: 01-Sep-18 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Sandeep Tyagi | 4-star rated FM
Founder & CIO | 32 yrs Experience | 14 yrs at current firm
Past Experience: Inductis (Founder), EXL Services (VP), Mitchell Madison Group (Partner)
Sandeep Tyagi is the Founder and Chairman of Estee Advisors, where he leads the development of the firm’s quantitative investment strategies. He previously founded Inductis, which later merged with EXL Service, and was a Partner at Mitchell Madison Group. He holds a B.Tech in Computer Science from IIT Delhi, an MBA from Columbia Business School, and a Certificate in Quantitative Finance (CQF)
Vivek Sharma | 1-star rated FM
FM
Past Experience: DVC Futures (Founding Partner), Futures First (Head of Energy Trading)
Vivek Sharma is the Head of Asset Management at Estee Advisors, responsible for the firm’s systematic strategies including Long Alpha and I-Alpha. He has over 18 years of experience in quantitative trading and asset management, and is an alumnus of IIT Kharagpur.
IME's Review of Estee
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
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View on AMC
Estee is a specialized PMS AMC with a strong pedigree in quantitative and algorithm-based investing. Their credentials, backed by a team with a proven track record in systematic investing, make them a compelling choice for investors seeking a data-driven approach.
AMC's Pedigree
Founded in 2008, when SEBI first permitted algorithmic trading, Estee has since mastered the application of quantitative strategies to investing. They have been pioneers in developing algorithm-driven investment products, and are one of the oldest pure quant funds in the country (launched in 2008). The have a large team of 95+ in their quant/tech department.
AMC Team
Sandeep Tyagi, with a strong background in data analytics, founded Estee and has since demonstrated his expertise through a disciplined quantitative investing approach. He is joined by Vivek Sharma, who also brings extensive experience in quantitative trading, further strengthening Estee’s investment strategy.
Investment Philosophy
Estee follows a strict, algorithm-driven, quantitative investment philosophy, selecting companies entirely free from human bias. Their oldest fund, I-Alpha, has not had a single negative return month till date (Jan-25), in their market neutral strategy - a testament to their quant pedigree.
AMC Background
Estee is a quantitatively driven investment management firm founded in 2008, coinciding with the introduction of algorithmic trading in Indian capital markets. The firm operates across asset management, proprietary trading, and execution services, with presence in both India and the US. Over time, Estee has built one of the more institutionally scaled quant platforms in India, employing over 90 professionals across quantitative research, technology, execution, risk, and operations. The firm is a long-standing participant in market-neutral and arbitrage strategies and runs one of the largest arbitrage books in India by trading volumes, supported by a low-latency, co-located execution infrastructure across NSE, BSE, and MCX. The AMC has a seasoned board and advisory panel comprising former global asset managers, senior Temasek executives, and leaders from large proprietary trading and hedge fund platforms
Investment Philosophy
Estee’s investment philosophy is rooted in the belief that consistent alpha in liquid markets is best generated through systematic, rule-based processes that minimise human discretion and exploit repeatable statistical inefficiencies. The firm applies quantitative models across arbitrage, long-only, and long-short strategies, combining large-scale data analysis, factor-based signals, and regime-aware optimisation to construct portfolios with tightly controlled risk characteristics.
Quantitative and Systematic Orientation
- Investment decisions are driven by automated models rather than discretionary views, reducing behavioural biases and emotional decision-making.
- Opportunities are identified through continuous scanning of market data, with thousands of securities and pricing relationships evaluated per second.
- Extensive back-testing and out-of-sample validation over long historical periods are used to establish statistical robustness before live deployment.
Focus on Market Neutrality and Controlled Exposure
- Core strategies, particularly I-Alpha, are designed to be market neutral or near-neutral, capturing mispricing through hedged arbitrage rather than directional bets.
- Returns are intended to be driven by pricing inefficiencies and execution quality, with limited dependence on overall market direction.
- In directional strategies such as Long Alpha and Long-Short, exposure is explicitly budgeted and dynamically adjusted based on model signals and regime indicators.
Multi-Layered Risk Management
- Fund-level controls: In-built algorithmic limits governing exposure, leverage, and concentration, with continuous monitoring.
- Strategy-level controls: Explicit exposure and daily stop-loss budgets defined for each strategy.
- Operational controls: Daily reconciliation across brokers, clearing members, and custodians, with exception reporting to senior management.
Technology and Execution as a Source of Edge
- Proprietary low-latency execution infrastructure co-located with major exchanges, enabling rapid and cost-efficient trade execution.
- Smart order routing and market-making capabilities that allow exploitation of small spreads at scale.
- Continuous post-trade analytics and feedback loops to refine models, improve execution efficiency, and adapt to evolving market microstructure.
Philosophy on Consistency and Capital Preservation
Across strategies, Estee prioritises consistency of returns, drawdown control, and capital preservation over aggressive return maximisation. The firm views disciplined process adherence, robust technology, and real-time risk management as central to delivering stable, risk-adjusted outcomes across market cycles, rather than reliance on episodic market views or discretionary timing calls .
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