ICICI Prudential Asset Management (Cat3)

Funds managed

Fund nameAsset ClassLicense
ICICI Prudential AIF Long Short FundLong-Short EquitiesSEBI AIF Cat 3
<Fund name> Long short equitiesSEBI AIF Cat 3

About the AMC

  • ICICI Prudential AMC Ltd is a joint venture between ICICI Bank and ICICI Prudential Plc. 

It has AUM in the mutual fund space. It also caters to Portfolio Management Services, Debt, Equity and Real Estate asset classes. It grew substantially from the time it established in 1998, it had started out with 6 employees and 2 locations to now (as on 31st March 2020) reaching 2012 employees and 300 locations and an investor base of 5.6 million. Over the years it has focused primarily on increasing its reach and accessibility to the investors. It’s Parent Companies and Sponsors are, ICICI Bank, ICICI Prudential Plc, Prudential Corporation Asia (PCA) & Jackson Holdings LLC. It has managed to bring along 68+ Mutual Fund Schemes and has approximately 3,44,164 crores AUM.The elaborate list of its Management Team, Investment Team, Board of Directors and Directors of the Trustee Company is given in the link below. 

https://www.icicipruamc.com/about-us

  • Fund Manager – Mr. Nandik Mallik is the fund manager of the ICICI Prudential AIF Long Short Fund. Mr. Mallik joined ICICI Prudential Asset Management Company Limited in January 2017. His past work experience includes work at Fair Isaac, Bangalore, NM Rothschild, Mumbai ICICI Bank, Mumbai, BNP Paribas, London, Credit Suisse, London, and Edelweiss Asset Management, Mumbai. Nandik is an MS – Finance from London Business School, PGDM from IIM Calcutta and B Tech from IIT Kharagpur.

https://www.linkedin.com/in/nandik-mallik-513b5a3/?originalSubdomain=i

Investment Philosophy (for the fund)

The ICICI Prudential Long Short Fund – Series I wants to use three boxes for its investment strategy. One, it aims to have cash position in the index and have it periodically hedged with futures. In this way, it aims to benefit from the direction of the market. Two, build positions through stock/index futures, which will be valuation based calls. This aims to benefit from valuation differences within sectors. Three, it will use index options for directional calls. In this way, it aims to benefit from even range-bound markets.

Media

Features of the fund, PMS-AIF.com.

https://www.pms-aif.com/investments/icici-prudential-long-short-fund/

In this link, key attributes, strategies and the investment philosophy is explained.

Information about the AMC, PaisaBazaar.com, 16/03/2020

https://www.paisabazaar.com/mutual-funds/icici-prudential-mutual-fund/

Analyst questions

  1.  The fund uses the Stock and Index Futures (Valuation Based Calls) as one of the strategies, what is the process of conducting fundamental research on these companies and what are the factors that count?
  2. What market scenarios are considered as a ‘red signal’ that leads to hedging the positions considering all 3 strategies are linked in some way to the index? 

Prepared by – Shivani Kadam

Date – 7th May 2020

Peer reviewed by – Taniya Nagpal

Date- 8th May 2020

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