Ranked by 
in
with a five year plus track record,
having an open ended long only
equity fund strategy.
* data as of 31/12/2024.
Ranked by in
with a five year plus track record,
having an open ended long only
equity fund strategy.
* data as of 31/12/2024.
Shepherd’s Hill is a SEBI-registered asset management group that provides sophisticated global investors with an opportunity to participate in India’s growth story through its India Private Investment Fund, an open-ended Category III Alternative Investment Fund (AIF) launched in April 2019. PMSbazaar has ranked us among the top three AIF CAT III funds in the country. With a minimum investment of ₹1 crore, the fund focuses on long-term growth-oriented, active value investing in Indian public equity, employing a sector-agnostic and flexicap strategy. It aims to minimize the risk of permanent capital loss while maximizing long-term returns, positioning itself as a vehicle for wealth creation amid India’s dynamic economic landscape.
Shepherd’s Hill is a SEBI-registered asset management group that provides sophisticated global investors with an opportunity to participate in India’s growth story through its India Private Investment Fund, an open-ended Category III Alternative Investment Fund (AIF CAT 3) launched in April 2019. PMSbazaar has ranked us among the top three AIF CAT 3 funds in the country. With a minimum investment of ₹1 crore, the AIF fund focuses on long-term growth-oriented, active value investing in Indian public equity, employing a sector-agnostic and flexicap strategy. It aims to minimize the risk of permanent capital loss while maximizing long-term returns, positioning itself as a vehicle for wealth creation amid India’s dynamic economic landscape.
An AIF CAT 3 also known as an Alternative Investment Fund (AIF) Category III is a type of investment fund in India that employs diverse and complex trading strategies to generate long-term returns. Shepherd’s Hill’s AIF CAT 3 Fund uses our proprietary methods to invest in public markets, including listed securities. An AIF CAT 3 caters to high-net-worth individuals and institutional investors. All (AIF) Alternative Investment Funds in India are regulated by SEBI, to ensure compliance with investment guidelines and risk management norms.
AIF CAT 3 funds can actively trade in listed and unlisted securities to generate returns. Such an AIF Fund can also invest in various asset classes, including equities, commodities, and debt instruments. These AIF CAT 3 funds can be structured as open-ended or close-ended and must adhere to SEBI regulations regarding minimum corpus, risk management, and disclosure norms. AIF fund managers employ various strategies, making them suitable for all types of investors.
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.”
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.
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.
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.
Find clear and concise answers to common questions about asset management, helping you make informed decisions with confidence.
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.
The Fund Manager (FM) will use proprietary screening tools and software to focus on only those companies that it believes merit further research and analysis. With approximately 5,000 listed companies on the Indian exchanges, the FM plans to focus research on a high-quality subset with the goal of achieving operational efficiencies.
The FM will employ a proprietary checklist it has developed to identify any red flags that appear with respect to a potential investment. Issues for scrutiny include related party transactions, joint ventures, equity or debt investments in other companies, loans and advances that have been written off, exorbitant salaries to managers, and preferential allotments.
The FM will perform an extensive quantitative analysis with respect to potential investments. The FM will analyse multiple years of publicly available data to create a financial picture covering many facets of operations, including profit margins, return on assets, debt levels, operating leverage, and dividend yields.
The FM will research and judge the qualitative aspects of each potential investment. Topics relevant to this part of the process include management quality, minority shareholder communication (including quarterly investor calls), business moats, and relationships with suppliers and customers.
When the number of available investment opportunities exceeds the number of investments that the portfolio can contain, the Investment Manager will compare ideas to each other in order to assess the relative attractiveness of each. Considerations relevant to this analysis include over- or under-exposure in an industry sector and perceived correlations between assets.
A deliberate decision is taken on choice of portfolio company considering all factors, with price of entry being key.
Once an investment decision has been made, the FM will monitor its position continuously. Along with each investment decision, the FM will monitor the entire portfolio in an effort to ensure that any portfolio-level risks are considered and mitigated to the extent possible.
Our asset management services are designed to optimize your investments and grow your wealth. With personalized strategies, we help you navigate the complexities of the financial landscape.
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