Capveda Capital (India) Advisory Fund is owned by Kalpesh Kinariwala. It has a modest office in Mumbai. Even with the humble surroundings, the firm has reported net returns of 11.86%, well above the average negative returns from India focused foreign hedge funds reported at just 2%.
Kinariwala's performance has stumped his foreign rivals and he stumps them even more with a daily email tracker of his work to all, from clients to the competition.
Many local hedge funds are eager to boast about their returns in the hope that many investors to put their investments with them. This though has proven quite difficult as local market information and the lack of foreign currency exposure force many to invest in local funds. New investment devices and schemes that are now being employed may convince many to change otherwise.
These include long short strategies are still new in India, who favor buying stocks and then keeping them. With the new strategies, the main drawback would be the higher fees.
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