Funds managed
| Fund name | Asset Class | License |
| Alphagen Next | Long only | SEBI Cat 3 |
| Alpha 10 | Large cap stock | PMS |
| Pico Power | Small cap stock | PMS |
| Dynamo | Multicap(not mentioned on website) | PMS |
https://cafemutual.com/news/cafe-alt/18190-one-year-performance-of-long-only-aifs
(info about Alpha gen next from the above link)
About the AMC
- Alphagen next is an open ended fund
- Inception year-2009 , started by – Naresh Gupta (Inventor &CEO)
A Gold medalist from the reputed Indian Institute of Technology (IIT) and a Ph.D in Computer Science from University of Maryland
and Raman Nagpal (Inventor& CEO)
A Bachelor in Computer Science from Delhi and a Masters in Computer Science from BITS Pilani, is an MBA and a CFA with 20 yrs of experience of running global business.
- Key staff – Dipika Nagpal , Director (M.Phil in economics from Delhi School of Economics)
-Jitendra Kumar, Chief Compliance & risk Officer (13 years of experience of equity markets in the fields of Risk Management and Complaince function)
Investment Philosophy (for firm)
- The basic philosophy that a portfolio consisting of a bunch of high quality businesses, bought at a historically reasonable valuation and held for medium to long term will invariably beat the market and most other funds by a fair margin.
- Focus almost entirely on Fundamentals. Pick the most robust businesses using sophisticated financial analysis.
- Ability to take advantage of market’s psychology to buy these high quality stocks at reasonable valuation using the unique “Pendulum Hypothesis”
- Very risk-averse and conservative approach. Never make arbitrary weight calls on any sector or stock.
- No subjectivity or emotionality in the decision making process. Decisions made independent of individual biases and preferences, strictly based on the rules ingrained in the system.
- Never make calls on the market directions or timing. Always invested, long-only strategy
- The key strategy is to hold on to winning ideas and weed out losers at regular intervals based on the concept of spatial – temporal analysis (i.e. assessment of business relative to its rank within the sector, across sectors both the current point in time and over historical periods as well) with very limited scope envisaged for manual intervention.
Media
Title- Will AI eat fund manager’s jobs in India?
Media platform- Factor Daily
Date-March27, 2017
https://factordaily.com/ai-big-data-machine-learning-funds-fintech/
Summary- Article covers how AI reduces the need for human intervention and yet is able to produce superior return when compared with the benchmark. AccuraCap employs mathematical model straddling big data analytics and artificial intelligence to manage the funds.
Topic – Now, AI replacing hedge fund managers
Media platform name- Business Standard
Date- September12, 2017
Summary- Article covers how different firms including AccuraCap are using AI while aking investment decision.
Topic – Edelweiss tied up with Accuracap
Media – Bloomberg TV
Date- October15, 2015
https://www.youtube.com/watch?v=O4Qsf0izC6g
Summary- Edelweiss tied up with Accuracap to tap HNI segment to establish a fund based on Big Data and behavioral analytics which help to find good companies. It is completely automated, very little human intervention emotion free approach of investing using data analytics.
Analyst questions
- As the funds are managed through AI how do incorporate behavioral finance (human sentiments) aspect in the model? How do you attract, convince or satisfy the investors as the models are completely automated with near zero human intervention?
- How do you maintain operational due diligence, also how do you ensure that the models are free from cognitive errors? / Do you recognize cognitive biases, how do you deal with the same?
- As Alphagen next is an open ended fund, how do you meet the redemption request or contingency event? Do you have enough cash or liquid securities?
Prepared by – Vanshika Bagrecha
Peer reviewed by – Ridhima Jaisinghani
Date – 12th May
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