Economic Times- At a time when the Indian equity market has been volatile, a top performing US-based, India-dedicated hedge fund has decided to reopen one of its main funds to raise additional capital.
Massachusetts-based Monsoon Capital, founded by a former president of Indus Entrepreneurs (TiE), Gautam Prakash, is likely to reopen its flagship fund, the $800-million India Inflection Fund, a hedge fund that invests in mid-market Indian companies. Although the exact details are not known, it has been learnt that Monsoon Capital plans to raise an additional $200 million for the fund from its investors that include large endowments and institutions.
Reopening of hedge funds and loosely-regulated pools that have flexibility in their positions and in the type of instruments employed, is typically done when the market situation is likely to improve. Hedge funds are vital in global equity markets and manage about $1.3 trillion in assets worldwide.
Weak global markets, including yen, carry-trade unwinding, heavy FII selling and subprime concerns led the benchmark Sensex to fall by about 6% last week.
