EquNev-K1t Capital hedge fund merges with UK-based Coleman Group

India-based EquNev-K1t Capital hedge fund has merged with UK-based Coleman Group.

EquNev Capital, which was launched in July 2015, is focussed on providing capital and funding advice in the areas of investment banking, early-stage and incubation-fund management, and private wealth management, focussed on the country and the emerging markets, which includes the GCC, Africa and ASEAN regions.

Coleman is a European markets-focussed fund that manages in excess of $40 million of investments, and claims it has been profitable in all the years since has been operational.

With the merger, both the companies will be able to look at quant-based investment strategies from the European markets, along with the US market where EquNev has a presence. “This will help in diversification to other mature markets and help us focus on both the US and European markets stocks, which include S&P 500, Euro Stoxx 600, major US- and European-listed index futures and Volatility Exchange-Traded Funds (ETFs),” Kapil Khandelwal, Director, EquNev Capital, told BusinessLine .

Further, the merged fund will improve the Sharpe Ratio, a measure by which the fund’s returns are measured, adjusting for risks. The Sharpe Ration for the merged fund is over 2, said Khandelwal. Also, the fund’s combined returns for the last three years stood at 37.95 per cent on an annual basis, which is almost four times higher than Nifty’s performance. In rupee terms, Nifty has delivered 9.71 per cent per annum, the firm said.

As part of the merger terms, EquNev-K1t Capital’s CEO, Simon Wajcenberg, will continue on the board of Coleman Group and also act as Chief Marketing Officer. Anthony Medina, current Chief Investment Officer of Coleman Group, will take over as CIO of quant strategies and algorithms to manage the investments of the merged fund. Khandelwal will step on to the board of Coleman Group.

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