Blackstone-backed ASK Asset and Wealth Management’s subsidiary, ASK Hedge Solutions, has launched its first long-short fund, ASK Absolute Return Fund. The fund will have a corpus of ₹3,000 crore, of which ₹1,000 crore will be raised over the next six months.
The category 3 alternative investment fund will take a conservative return approach, aiming to deliver returns of 100-150 basis points over liquid fixed income instruments with an investment horizon of 12-15 months.
The fund is open-ended and has no fixed tenure. Apart from generating adequate returns, the focus is on low volatility and minimal drawdowns.
Chief executive officer Vaibhav Sanghavi said the portfolio will consist of stocks on the F&O list. He said that the fund was attracting significant interest from both onshore and offshore investors, but the current offering will be restricted to onshore subscribers.
Sanghavi added that a separate fund would be launched targeting offshore investors, including global pension, retirement funds, endowment funds, multiple family offices and funds of funds. The total fund capacity is $1 billion.
Globally, long-short funds constitute 4-5 per cent of total assets, but in India, the category is still at a nascent stage with assets of just over ₹1 lakh crore. However, with the rise of ultra-high network individuals in India, there is a rising appetite for such complex products.