TATA Equity Plus Absolute Return Fund – Category III AIF

The investment objective of TATA Equity Plus Absolute Return Fund- Category III AIF is to adopt a ‘dual’ portfolio strategy to create a Core Portfolio and a Derivatives Portfolio to generate long term capital appreciation, with lower volatility compared to NIFTY 50 index.

The investment philosophy of TATA Equity Plus Absolute Return Fund- Category III AIF is:

• Low risk equity long-short strategy managed through category III AIF platform
• Focus on alpha generation: Long-short portfolio diversified across many stocks

• Low market dependence: low net equity (i.e., all longs – all shorts) exposure
• Long term capital appreciation with lower volatility

The dual portfolio construct approach is:

DUAL PORTFOLIO = CORE PORTFOLIO + DERIVATIVES PORTFOLIO

The investment strategy of TATA Equity Plus Absolute Return Fund- Category III AIF is aimed in such a way that:

TATA EQUITY PLUS ABSOLUTE RETURNS FUND = INVESTMENT PORTFOLIO + HEDGE PORTFOLIO

The investment portfolio is built for investing with an aim to generate alpha over Nifty 50. This is done by:

• Stock Selection
• Portfolio Construction
• Stock Exit Strategy

The hedge portfolio is built targeting to generate positive returns and cash irrespective of market conditions. This is done via:

• Long & Short Positions
• Supplement to investment portfolio
• Focusing on Risk:Return
• Profit booking orientation
• Dynamic Gross exposure adjustments