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An AIF is a privately pooled investment vehicle which can comprise Indian and foreign investors. The resources are pooled in the form of a trust and the funds are used for investing in a defined asset class and strategy.
The Shepherd’s Hill Alternative Investment Fund, because of its relatively smaller size, is able to take positions in small companies. While the Fund Manager (FM) will consider large, blue chip companies as investments, it will use its size advantage to also find “hidden gems.”
The AIF will maintain a balance between diversification and focus by holding roughly 15-20 positions in its portfolio. This strategy seeks to avoid the risk of concentrating in just a few positions while seeking to outperform the index or benchmarks.
FM uses a bottom-up approach to investment management. This strategy dictates a focus on company-level operations and environments. SHFA does not perform macro-economic analysis as it relates to specific investment opportunities. Individual investment decisions are made purely on the merits of the security under consideration.
Shepherd’s Hill Financial Advisors (SHFA), the FM, has a track record and expertise in the Indian capital markets. Therefore our focus will be primarily on securities of Indian companies that are available for sale in India. The Shepherd’s Hill AIF will invest primarily in Indian equity securities.
An Alternative Investment Fund (AIF) or ‘ AIF Fund ‘ is a privately pooled investment vehicle which can comprise Indian and foreign investors. The resources are pooled in the form of a trust and the funds are used for investing in defined asset classes and strategies. The minimum investment subscription amount for an AIF Fund is Rs. 1 crore, and units are issued against subscription amounts, similar to units being issued by a mutual fund.
A Cat III or Category III Alternative Investment Fund is a fund which can employ either diverse or complex trading strategies for investing in listed or unlisted securities and derivatives, including use of leverage. The types of funds which may be included under this category include hedge funds or funds which trade with a view to make short term returns or such other funds with no specific incentives or concessions given by the government or regulator. However, Shepherd’s Hill’s Cat III fund is relatively straightforward and does not invest in derivatives or short-term strategies. Cat III AIF Fund is currently the only viable option for investors in India to invest in public securities through a privately pooled vehicle.
Minimum commitment of Rs. 1 cr for Indian, foreign and non-resident Indian (NRI) investors.
5-year commitment.
Cannot be citizens of, or be any other entity which is registered or incorporated in, Pakistan or Bangladesh.