Whalesbook
Bandhan AMC Enters Specialized Funds Space with Hybrid Long-Short Offering
Bandhan Asset Management Company (AMC) has launched its first Specialised Investment Fund (SIF) strategy, the Arudha Hybrid Long-Short Fund, marking its entry into this segment via its Arudha platform.
Fund Allocation and Strategy
The fund plans a balanced allocation, deploying between 35% and 65% in debt and money market instruments, and an equal percentage in equity instruments. The equity exposure will be fully hedged and market-neutral. This approach aims to capture pricing inefficiencies and arbitrage spreads, rather than profiting from directional market movements. The strategy allows for unhedged derivative exposure up to 25% of the portfolio.
Debt Portfolio Details
Investments in the debt portion will focus on short- to medium-term instruments, with an active duration of one to four years. The portfolio will primarily consist of AAA-rated or sovereign securities, with a strict cap of 10% on AA+/AA-rated instruments to ensure portfolio stability and liquidity.
Target Investors and Market Access
Vishal Kapoor, CEO of Bandhan AMC Limited, stated the fund is designed for sophisticated investors such as high net-worth individuals, institutional investors, and family offices seeking structured investment solutions within the SIF framework. He emphasized the fund's ability to combine debt investments with equity arbitrage. Units of the Arudha Hybrid Long-Short Fund will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) following allotment, providing investors with secondary market trading opportunities.
Market Positioning
This launch places Bandhan AMC among asset managers expanding their offerings into the specialized investment fund space, catering to investors seeking differentiated, regulated strategies.