Scheme Rating
IME Scheme Rating
Good option for investors seeking to participate in equity markets with downside protection: With a greater ability to change exposures to net-long, ITI Long-Short Equity AIF is a good option for investors wanting to participate in the equity markets, while wanting downside protection. It is also a good fit for investors wanting to diversify their exposures from traditional long-only funds.
IME Strategy Rating
Aggressive long-short strategy: Unlike absolute return strategies where net-long positions are kept within a tight band, ITI Long-short equity allows for a much higher degree of variance in the net-long exposures (ranging typically between 25-60%, but with an ability to go from -15% to 100%). This allows for a much greater ability for the fund to deliver longer-term outperformance, provided the fund manager’s call on the markets/stocks goes right. This strategy may be considered to be a more aggressive form of a dynamic asset allocation hybrid fund.
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 ITI Long Short Equity AIF
ITI Long-Short Equity AIF Investment Philosophy
Objective
- To outperform the Nifty index over a full equity market cycle, while protecting downside during equity market downturns along the way; thus lowering volatility of performance & lowering risks.
- Fund focus on long term capital appreciation.
Fund Approach
- Fundamental focus: primarily a stock-picking approach based on fundamentals (both on long & short side)
- Key Philosophies: Stock-picking (absolute return merit, no index-hugging) | Checklist approach (to filter opportunities)
- Dynamic allocations: increase exposures in undervalue/oversold markets | reduce exposures in overvalued/overbought markets
Dual Portfolio Approach
- Strategic Portfolio: aimed at capturing multi-year growth of attractive Indian franchises | invest in secularly growing, high-quality, well-managed Indian franchises
- Tactical Portfolio: aimed to manage risk exposures while navigating volatile Indian equity markets | dynamic allocations between long & short exposures
Typical Net-Exposure Ranges
- Bullish Markets: 80-90% net long (100-120% gross long, 20-30% gross short)
- Normal Markets: 40-60% net long (60-90% gross long, 20-30% gross short)
- Bearish Markets: 20% net long (50-60% gross long, 30-40% gross short)
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| ITI Long Short Equity AIF |
Performance as of: 30-Dec-99 | Inception Date: 11-Apr-18
Fund Managers
Rajesh Bhatia | 4-star rated FM
MD & CIO | 20 yrs Experience | 7 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.
Fee Structure
| Fee Structure | Fee |
|---|---|
| Fixed Fee Structure | 2.5 |
| Variable Fee Structures | 1.5% fixed + 15% above 10% hurdle |
| Exit Fees | 6months(2%), 6-12months(1%) |
AMC
AMC: (click link for detailed AMC review)
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.