ITI Long Short Equity Fund

Derivatives

Diversified

India Long Short Hedge

Others

Aggressive growth Investor Profile

Investor Profile

Empty

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

ITI Long Short Fund invests in alternative assets for non-traditional growth opportunities.

What This Strategy Does

ITI Long Short Equity Fund is an equity fund which captures India's expanding alternative investment opportunity through a long-short strategy, deploying capital across sectors to achieve benchmark-agnostic returns.

CW Expert Research Notes

Unconstrained Opportunity Set

The ITI Long Short Equity Fund's ability to take both long and short positions across the market-cap spectrum allows for dynamic exposure management and potential alpha generation through differentiated security selection.

Concentrated High-Conviction Bets

With a concentrated portfolio of high-conviction ideas, the fund can capitalize on its best investment theses while maintaining an active risk-management overlay.

Asymmetric Risk Profile

The fund's long-short structure aims to provide downside protection during market drawdowns while retaining upside participation, potentially enhancing risk-adjusted returns.

Performance and Risk Analysis

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

Benchmark Performance Comparison

ITI Long Short Fund

FD Returns

Detailed Risks

Market Risk

Prolonged economic slowdown could trigger consumer spending contraction, impacting cyclical sectors.

Liquidity Risk

Volatility spikes may impair small/micro-cap liquidity, hindering rebalancing or exits.

Concentration Risk

Concentrated sector bets amplify idiosyncratic risks like regulatory headwinds or competitive pressures.

Specific Strategy Risk

Earnings misses or competitive threats could undermine long positions' growth thesis.

Strategy Details

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

Core Investment Theme

Delivers unconstrained exposure to India's equity market through a long-short strategy. By taking both long and short positions, this approach aims to generate alpha from stock selection while maintaining a lower net market exposure. The impact is a portfolio with lower volatility and drawdowns compared to traditional long-only funds, while still capturing upside from rising stocks.

Broader Market View

Market Outlook

The equity market appears to be in a post-correction phase, offering an attractive entry point as consumption and earnings normalize. Sectors like consumer, financials, and industrials stand to benefit from this recovery, though risks like margin pressure and cyclicality persist.

Why This Strategy is Attractive Now

This strategy appears well-positioned for the current environment with exposure to consumer cyclicals, financials, and technology. The portfolio holds market leaders across sectors and is diversified with around 70 holdings, balancing growth and stability. Its moderate beta and flexibility could provide risk-adjusted returns.

Investment Style & Process

Investment Style

The portfolio appears to reflect a long-short equity strategy, combining long exposure to quality growth companies with short positions to hedge market risk.

Why it Makes Sense

A long-short approach can make sense in the current environment, allowing participation in secular growth trends while mitigating volatility through diversification and hedging.

High-Level Investment Process

Sourcing: Employs fundamental research to identify companies with sustainable competitive advantages and attractive growth prospects. Selection: Combines top-down and bottom-up analysis to construct a diversified portfolio of long and short positions. Construction: Actively manages net and gross exposures to optimize risk-adjusted returns, with a focus on capital preservation.