WhiteOak Capital Arbitrage Fund

Derivatives

India Debt Liquid Market

Liquid

Others

Empty

1–7 yearsInvestment Horizon

Empty

What This Strategy Does

WhiteOak Capital Arbitrage Reg Gr is an equity arbitrage fund which captures India's ₹1.5 trillion financial services opportunity through cash-and-carry arbitrage strategies, deploying capital across financials, consumer cyclicals, and industrials to achieve low-volatility, benchmark-aligned compounding.

CW Expert Research Notes

Consistent Outperformance

The fund has demonstrated resilient benchmark-relative behavior, outperforming in 11 out of 11 years, highlighting its ability to deliver consistent outcomes across market cycles.

Differentiated Positioning

The fund's investment process is differentiated from peers through its overweight in the financialServices sector and exposure to high-conviction names like HDFC Bank, reflecting a distinct portfolio construction approach.

Defensive Risk Profile

With a low volatility of 0.884 and a favorable Sharpe ratio of 1.064, the fund exhibits a defensive risk profile, potentially offering downside protection and making it suitable as a portfolio diversifier.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

0.0% AnnuallyAlpha

+0.0% vs +0.0% benchmarkSince Inception

+0.0% vs +0.0% benchmark3Y Annualized

+0.0% vs +0.0% benchmark5Y Annualized

WhiteOak Capital Arbitrage Fund

Benchmark Index

Benchmark Performance Comparison

Whiteoak Capital Arbitrage Fund

FD Returns

Risk Profile

Standard Deviation0.3%

Sharpe Ratio1.28

Detailed Risks

Market Risk

Prolonged market volatility amid recession fears could trigger arbitrage spreads widening, mitigated by low-beta portfolio construction.

Liquidity Risk

Concentrated mid-cap exposure risks liquidity stress during volatility spikes, mitigated by sizeable large-cap allocation.

Concentration Risk

Significant mid-cap concentration raises idiosyncratic risks, diversified through multi-sector arbitrage opportunities and position sizing.

Specific Strategy Risk

Regulatory changes impacting arbitrage strategies or concentrated holdings could pressure alpha generation, monitored through rigorous research.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Captures pricing inefficiencies across asset classes through low-risk arbitrage strategies. This approach generates consistent returns by exploiting temporary mispricings between cash and derivative markets, providing a source of low-volatility income.

Broader Market View

Market Outlook

Equity markets appear to be entering a recovery phase following the recent valuation correction. Consumption and earnings normalization, coupled with a revival in capital expenditure and credit growth, are aligning favorably with the strategy's tilt towards consumer, financial services, and technology sectors. While competitive pressures and margin cyclicality remain risks, the present environment offers an attractive entry point.

Why This Strategy is Attractive Now

The strategy seems well-positioned to capitalize on the current market dynamics. Its balanced exposure across consumer cyclicals, defensives, financials, and technology appears aligned with key beneficiaries of the unfolding recovery. The portfolio's diversification across approximately 70 holdings, including market leaders, coupled with its moderate beta and flexibility, suggests a risk-adjusted approach befitting this phase of the cycle.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, robust profitability, and consistent earnings growth across market cycles.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a focus on quality businesses with pricing power, strong balance sheets, and resilient cash flows could provide downside protection while participating in secular growth opportunities.

High-Level Investment Process

Sourcing: The strategy appears to source investment ideas from a universe of established companies across market capitalizations, favoring those with sustainable competitive advantages, healthy profitability metrics, and attractive growth runways. Selection: The selection process suggests a preference for firms with strong corporate governance, capable management teams, and capital allocation policies aligned with shareholder value creation. Construction: Portfolio construction is consistent with a focus on risk management through diversification across sectors and individual positions, while allowing higher-conviction ideas to establish meaningful weights.

Portfolio Holdings Overview

SectoralAllocation

Consumers13.66%

Utilities2.86%

Services19.78%

Financial Services35.12%

Capital Goods16.42%

Energy & Infra8.74%

Technology3.43%

Geographic Allocation

Domestic100%

Top Stock Holdings

CompanySectorAllocation

Cash Offset For DerivativesUtilities50.98%

WhiteOak Capital Liquid Dir GrUtilities9.42%

WhiteOak Capital Ultr S/D Dir GrUtilities6.70%

HDFC Bank LtdFinancial Services6.35%

Punjab National BankUtilities3.83%

Vodafone Idea LtdServices3.81%

HDFC Bank Ltd.Utilities3.35%

Bharti Airtel LtdServices2.61%

Clearing Corporation Of India LtdUtilities2.50%

HDFC Securities LimitedUtilities2.46%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Piyush Baranwal

Mr. Piyush Baranwal has experience of 18 years. Manages 84 funds at WhiteOak Capital Asset Management Limited with an AUM of approximately ₹11,733 Cr Holds a PGDBM degree.

59 years

Combined Team Experience

₹ 22,892 Cr

Assets Under Management

Ramesh Mantri

Co-Portfolio Manager

Mr. Ramesh Mantri has experience of 23 years. Manages 50 funds at WhiteOak Capital Asset Management Limited with an AUM of approximately ₹11,159 Cr Holds a M.B.A. degree.

CW Expert Take

WhiteOak Capital Arbitrage employs a low-risk arbitrage strategy. Their investment process focuses on identifying and capitalizing on pricing inefficiencies across equity markets. The fund maintains a diversified portfolio of arbitrage positions, carefully managing risk while seeking consistent returns with low volatility. WhiteOak's expertise lies in quantitative analysis and execution capabilities that allow them to exploit short-term mispricings.

Firm Overview

Total AUM₹29,798.08 Cr

Investment Philosophy & Approach

Disciplined Approach

WhiteOak Capital follows a disciplined investment approach focused on risk management.

Rigorous Analysis

The fund house employs rigorous quantitative analysis for portfolio construction.

Long-Term Mindset

WhiteOak Capital maintains a long-term capital allocation mindset.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)1.1%

Regulatory & Tax Information

INF03VN01928

ISIN

DailyDealing Frequency

LTCG | >1Year 12.5%% on gain above 1.25 Lakh

STCG | <1Year 20%%

Tax Implications (India)