Investment Philosophy
TATA Absolute Return Fund aims to provide the fund with consistent returns and liquidity. The strategy follows a blend of fundamental, quantitative, and macro strategies for identifying trading opportunities.
The strategy is large cap focused and attempts to produce additional returns while retaining a low degree of volatility. The portfolio allocation is built to reduce volatility and drawdowns through asset combinations – Equity, Fixed income, and a Hedge (derivatives) portfolio.
Portfolio Construction
The portfolio is a combination of a fixed income portfolio with an equity long-short overlay.
FIXED INCOME PORTFOLIO (65-70% allocation)
- Allocation: substantial part of the AUM in low risk fixed income instruments such as liquid mutual funds, government bonds, PSU & tax-free bonds, corporate bonds etc
EQUITY LONG-SHORT PORTFOLIO (-20% to 35% net equity allocation)
- Long-Short Objective: aim to produce additional returns, while retaining low degree of volatility | will maintain a low net equity exposure | idea is to supplement fixed income returns by 5-10% p.a.
- Long Strategy (30-35%): large-cap focused
- Short Strategy (0-50%): via highly diversified stock derivatives (60-70 positions) | have the option to go net short in terms of net equity exposures
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Tata Absolute Return AIF | 8.8 | 9.5 | 7.2 |
Performance as of: 31-Jan-25 | Inception Date: 12-Apr-19
Fund Managers
Tejas Gutka | 2-star rated FM
Head of Portfolio Management | 19 yrs Experience | 5 yrs at current firm
Past Experience: Portfolio Manager & Head of Equitiy (Tamohara Investment Managers), Head of Research (tamohara Investment Managers), Assistant VP -Investment Advisory Services (Barclays Wealth and Investment Management), Assistant VP, Research (Barclays Wealth and Investment Management), Manager (CARE Ratings)
Tejas Gutka comes with 14 years of experience, started as a Credit Rating Analyst at CARE Rating. He later went to take the role of Equity Research Analyst at Barclays Wealth and Investment Management and Portfolio Manager at Tamohara Investment Managers before joining Tata PMS in December 2019.
Harsh Agarwal | 3-star rated FM
Fund Manager | 23 yrs Experience | 6 yrs at current firm
Past Experience: Portfolio Manager (Reliance Securities), Principal Research Analyst (Vistasoft India)
Harsh Agarwal is a specialist in equity hedge fund strategies. He joined Tata Asset Management in November 2018 as Head of Alternative Strategies. Started the alternatives business with launch of Tata Absolute Return Fund in April 2019. Through Tata Absolute Return Fund, Harsh introduced the Equity market-neutral investing strategy to the investor community. His prior stint includes working as Portfolio Manager‚ Equity long/short strategy at Reliance Securities where he managed equity long/short portfolio and generated consistent high returns. Harsh received his training in equity investments and hedging strategies while working for Deutsche bank’s trading desk and Roc Capital Management USA. He is an MBA (Finance) from Symbiosis, Pune and also done courses in Certified Portfolio Manager and Certified Treasury Manager from The Institute of Chartered Financial Analysts of India University.
Fee Structure
| Fee Structure | Fee |
|---|---|
| Fixed Fee Structure | |
| Variable Fee Structures | 1.75% + 10% over 8% hurdle |
| Exit Fees | 6 months (1%) |
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