The Hindu Business Line : Boyer Allan may double size to over $100 m

BOYER Allan Investment Management Ltd, one of the larger hedge funds investing in India, expects to double its India-specific fund by the middle of next year.

The fund, launched last year, is currently worth $50 million, and is seeking to raise money from the US and European institutions to scale a size of over $100 million by summer, said Mr Jonathan Boyer, Managing Director, Boyer Allan.

Mr Boyer said the fund has a broad-based strategy of investing and does not particularly have a sector preference in stock picking.

Talking about valuation of the Indian equities market, Mr Boyer said that last year the market was "ridiculously cheap''.

"The market did get overheated in the early part of this year, but at the current level there is equilibrium in the Indian market,'' he said.

While there have been several discussions as part of the FICCI-SEBI annual global conference on securities market that suggest lack of liquidity and depth of the Indian market are serious concerns of foreign institutional investors, Mr Boyer disagreed with this view and said he is not constrained by the lack of liquidity in Indian equities.

The fund expects good double-digit returns this year from its Indian investments. The hardening of interest rates is a sign of the strength of the Indian economy, he said.

Allaying fears about volatility that hedge funds bring into equity markets, Mr Boyer said that he was doubtful that any of the "volatile'' hedge funds are operating in India.

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