Tata Asset Management has launched its second Specialised Investment Fund Titanium Equity Long-Short Fund. The fund aims to generate medium-to-long-term capital appreciation by actively managing both long and short exposures in equities and equity derivatives, with the ability to adjust net equity exposure dynamically between -25 per cent and 100 per cent, based on market conditions.
The NFO closes on May 11 and the minimum investment will be ₹10 lakh.
The fund keeps equity at the core, maintaining a minimum 80 per cent gross allocation to listed equity. It can also hedge its equity exposure through derivatives and take additional unhedged short positions of up to 25 per cent of the portfolio value.
Anand Vardarajan, Chief Business Officer, Tata Asset Management, said the SIF framework has opened up a very strategic middle ground between traditional mutual funds and AIF or PMS structures, allowing fund houses to bring more sophisticated strategies in a tax-efficient manner.
Full flexibility
The long-short fund has the ability to morph into an aggressive long or short position and may also potentially turn into an arbitrage like positioning depending on the market situation. This offers full flexibility to the investor across market phases, he said.
By actively managing both hedged and unhedged long and short positions, the strategy seeks to deliver performance that is less dependent on market direction and aims to convert volatility into opportunity across bull, bear and range-bound phases.
Suraj Nanda, Fund Manager, Titanium SIF, added traditional equity product keeps the net equity high at every valuation of the market, but the long-short fund is designed to do dynamic equity allocation as per the valuations of the market.
With unhedged short positions of up to 25 per cent of the portfolio also allowed, the fund seeks to capture opportunities across both rising and falling stocks, he added.