Key Takeaways
- • InCred Alternative Investments launched InCred Liquid Alternative Fund-I, a Category III open-ended Alternative Investment Fund (AIF) targeting over Rs 1,000 crore ($122 million) in commitments.
- • The fund employs a quantitative model-driven strategy combining futures long-short, relative value, and index strategies across multiple time horizons, positioning itself as a unique alternative to traditional debt funds.
- • Rishi Kohli, Managing Partner & CIO of Hedge Fund Strategies at InCred Alternative Investments, will manage the scheme with the objective of generating risk-adjusted returns over medium to long-term horizons.
- • Bhupinder Singh, Founder & Group CEO of InCred, signaled this launch as the first in a series, stating "The launch of our first long-short fund will be followed by other quant strategies from the InCred stable."
- • The fund targets positive absolute returns with low volatility across all market conditions, directly competing with debt fund allocations in institutional and alternative investor portfolios.
Summary
InCred Alternative Investments has entered the long-short hedge fund space with the launch of InCred Liquid Alternative Fund-I, an open-ended Category III Alternative Investment Fund. The vehicle represents the firm's strategic entry into quantitative alternative strategies and targets commitments exceeding Rs 1,000 crore (approximately $122 million USD), according to multiple sources covering the announcement.
The fund's investment approach combines three distinct quantitative methodologies: futures-based long-short positioning, relative value strategies, and index-based approaches applied across varying time horizons. According to Rishi Kohli, Managing Partner & CIO of Hedge Fund Strategies at InCred Alternative Investments, this combination "is unique in the market" and designed to deliver "strong positive absolute returns with low risk in all market conditions." The strategy explicitly targets low volatility and minimal downside exposure, positioning the fund as a differentiated alternative to conventional debt instruments for institutional allocators.
Leadership commentary indicates broader strategic intent beyond this single vehicle. Bhupinder Singh, Founder & Group CEO of InCred, stated in a press release that "The launch of our first long-short fund will be followed by other quant strategies from the InCred stable," suggesting a pipeline of quantitative products under development. This aligns with InCred's broader expansion in alternative assets; the group reportedly manages over Rs 4,000 crore in alternatives AUM with recent fund closings in credit strategies.
The launch targets institutional and sophisticated investors seeking alternatives to fixed-income allocations, capitalizing on growing demand for uncorrelated return streams in the Indian alternative investment marketplace. The Category III AIF structure provides operational flexibility while maintaining alignment with SEBI regulatory frameworks for hedge funds in India.
The fund's investment approach combines three distinct quantitative methodologies: futures-based long-short positioning, relative value strategies, and index-based approaches applied across varying time horizons. According to Rishi Kohli, Managing Partner & CIO of Hedge Fund Strategies at InCred Alternative Investments, this combination "is unique in the market" and designed to deliver "strong positive absolute returns with low risk in all market conditions." The strategy explicitly targets low volatility and minimal downside exposure, positioning the fund as a differentiated alternative to conventional debt instruments for institutional allocators.
Leadership commentary indicates broader strategic intent beyond this single vehicle. Bhupinder Singh, Founder & Group CEO of InCred, stated in a press release that "The launch of our first long-short fund will be followed by other quant strategies from the InCred stable," suggesting a pipeline of quantitative products under development. This aligns with InCred's broader expansion in alternative assets; the group reportedly manages over Rs 4,000 crore in alternatives AUM with recent fund closings in credit strategies.
The launch targets institutional and sophisticated investors seeking alternatives to fixed-income allocations, capitalizing on growing demand for uncorrelated return streams in the Indian alternative investment marketplace. The Category III AIF structure provides operational flexibility while maintaining alignment with SEBI regulatory frameworks for hedge funds in India.
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