AVENDUS ALTERNATE INDIA FUND

Fund Philosophy: Avendus Alternate India Fund

The investment philosophy of the Avendus Alternate India Fund is centered on the principle of "Unconstrained Alpha Generation" within the listed Indian equities space. As a Category III AIF, the fund’s mandate is to deliver superior returns by looking beyond traditional benchmarks and exploiting market inefficiencies.

• Game of Moats Framework: The core of the philosophy is the proprietary "Game of Moats" framework. The fund seeks to identify companies with sustainable competitive advantages—whether through technological leadership, brand equity, or cost superiority—that are capable of delivering high-quality, long-term earnings growth.

• Agnostic Opportunity Capture: The fund follows a market-cap agnostic philosophy, allowing the management team to pivot seamlessly between large-cap stability and mid-cap growth. It specifically targets sectors on the cusp of multi-year up-cycles, often driven by structural macro themes like rising consumption, digitalization, and the professionalization of the Indian services sector.

• Active Risk Management: A key pillar of the philosophy is the active use of derivatives and hedging techniques. Unlike traditional long-only funds, the Alternate India Fund aims to provide a smoother return profile by neutralizing systemic market risk during periods of high volatility. This "dynamic hedging" ensures that the portfolio is positioned to protect capital during drawdowns while aggressively participating in market rallies.

• Institutional Discipline with Boutique Agility: The fund combines the rigorous due diligence of a global institution with the agility of a boutique manager. This allows the team to capitalize on special situations, such as corporate restructurings or unique policy shifts, which often provide lucrative entry points that larger, index-hugging funds might miss.