Unifi High Yield

Investment Strategy

Unifi High Yield Fund is a Category III AIF that combines fixed-income investments with event arbitrage strategies to generate stable, high-yield returns with capital preservation. The fund leverages opportunities across corporate credit, structured high-yield debt, and arbitrage trades​.

Core Investment Approach

Fixed-Income Portfolio with High-Yield Debt:

• Focus on AA-rated to investment-grade debt for stable returns.
• Hold-to-maturity (HTM) approach with selective trading for capital appreciation.
• Seeks superior risk-adjusted yields over conventional debt instruments.

Event Arbitrage for Additional Returns:

• Invests in opportunities arising from mergers, acquisitions, buybacks, open offers, delistings, and special dividends.
• These low-correlation trades provide market-neutral returns, reducing portfolio volatility.

Structured Portfolio for Risk Mitigation:

• Majority allocation to fixed-income investments ensuring stability.
• Select exposure to structured high-yield credit and directional equity trades.
• Active monitoring of corporate actions and market trends for dynamic allocation.

PMS Background

Founded in 2001 by Sarath Reddy, Unifi has scaled into one of the top five PMS providers in India, a trajectory made particularly credible by the fact that the platform was built independently without the backing of a large broker, mutual fund house, or star fund manager. Unifi’s growth has been driven by deep client engagement and a differentiated product philosophy centered on identifying time-bound market opportunities and launching focused, often close-ended strategies rather than maintaining perpetual evergreen offerings. This ability to consistently conceptualize, execute, and close niche strategies has allowed Unifi to establish itself as a distinctive PMS franchise despite operating without institutional sponsorship.

PMS Investment Philosophy

Unifi follows a value-driven approach to investing in growth businesses, where valuation discipline is paramount but business growth is viewed as the critical catalyst for re-rating. The firm focuses on niche opportunities that are often constrained by time and deployable capital, leading to strategies that are launched selectively and closed once the underlying opportunity matures. This philosophy has resulted in a thematic investing framework, where each strategy is built around a clearly defined market inefficiency or structural trend rather than broad-based market exposure.

Core Thematic Frameworks

1. Spin-off: Exploits mispricing arising from corporate restructurings and special situations.
2. Deep Value Discount (DVD): Targets businesses trading at a deep discount to intrinsic value due to low liquidity, limited market understanding, smaller market capitalisation, or weak benchmark linkage.
3. HoldCo: Identifies strong underlying operating businesses embedded within holding company structures, where valuation discounts are expected to narrow due to regulatory or governance-driven change.
4. APJ20: Focuses on sectors that are becoming globally competitive and are entering a phase of sustained market expansion, investing in firms well-positioned to benefit from these shifts.
5. Green: Invests in companies enabling carbon reduction or more efficient use of natural resources, across themes such as emission control, energy efficiency, water management, and waste management.
6. Insider Shadow: Invests alongside founders who have made meaningful open-market share purchases, indicating high internal conviction.
7. BCAD: Targets established companies leading market share migration from unorganised to organised segments, benefiting from structural consolidation trends.

Thematic Strategy Orientation

Each Unifi strategy is structured around a specific, well-defined theme spanning special situations, deep value, disruption-led consolidation, sustainability, or insider-led conviction. These strategies typically operate in less crowded segments of the market and are designed to deliver differentiated, risk-adjusted returns while also serving as portfolio diversifiers.

Suitable For

Investors seeking targeted exposure to clearly defined investment themes and time-bound opportunities, rather than broad, benchmark-oriented equity strategies.