ProAlpha Capital/ Monsoon Capital

Funds managed

Fund nameAsset ClassLicense
ProAlpha QG Dynamic Equity Fund (QGD)Long onlySEBI AIF Cat 3

About the AMC

  • ProAlpha Capital, a subsidiary of US-based Monsoon Capital, was formed in 2016
  • Key staff- Rishi Kohli, MD & CIO at ProAlpha Capital, prior work experience – Rishi was Head of Equity Derivatives at SSKI Securities, Derivative Sales at Refco (now Phillip Capital) in Mumbai and, earlier, in Derivatives Research at ICICI Securities.(Btech – IIT Kanpur, MBA –IIML)
  • Gautam Prakash is the Founder and CEO of Monsoon Capital, a family office and former investment advisor, and Director of ProAlpha Capital, prior work experience- an advisor to ChrysCapital, venture capitalist and partner at Bessemer Venture Partners, a management consultant for McKinsey & Company in New York.
  • Gaurik Shah, Portfolio Manager at ProAlpha Capital, a subsidiary advisor to Monsoon Capital , prior work experience -junior Delta1 trader at RBS Hong Kong, a quantitative research analyst in the institutional brokerage division ,MAPE ADMISI Securities
  • Mehul Patel, Portfolio Manager at ProAlpha Capital, a subsidiary advisor to Monsoon Capital, prior work experience Mehul was a member of the Alternative & Quantitative Research desk at Edelweiss Securities for 3 years, also worked at Morgan Stanley Advantage Services, providing quantitative research assistance to the London Proprietary Trading Desk.

Investment Philosophy (for firm)

  • ProAlpha Capital strongly believes that the optimal path to long-term wealth creation is through actively managed and diversified long-short investment strategies that are objective, rigorous and repeatable. 
  • ProAlpha focuses on both technical and fundamental quantitative strategies
  • We develop and advise on strategies leading to high risk-adjusted consistent positive returns.
  • A quantitative and systematic trading methodology with robust risk management
  • Diversification across multiple non-correlated models

(long short, systematic , avoid cognitive and emotional biases)

Investment strategy- ProAlpha QG Dynamic Equity Fund (QGD)

  • A strategy that invests in the equity market with a unique feature of dynamic Nifty hedging that helps to minimize losses during large declines in the equity market. This feature eliminates the need to time entry and exit into equities.
  •  With strong annualized net return of +15% since its inception in January 2014, this Strategy provides strong long-term compounded returns like an equity fund while reducing losses in large crashes or bear markets.
  • This investment strategy combines a fundamental factor long-only strategy with an active dynamic equity hedging model. The investment style is quality-growth with a strong focus on risk management.

Media

Topic – Portfolio Manager Mehul Patel Media Platform- ET Now Date-Oct18,2019

https://www.youtube.com/watch?time_continue=6&v=B7oJE5-HE2Y&feature=emb_logo

Discussed overall strategy for portfolio management consistent with valuation (GARP), macro and economy. Mentioned about dynamic hedging based on rule based models which helps to generate alpha when market falls.Discussed various sectors bullish on BFSI ,consumer durable and discretionary.

Topic/Title- Rishi Kohli of ProAlpha Advisors on the target of Nifty going 12,000 in few months Media platform- ET Now Date- March20,2019

https://www.youtube.com/watch?time_continue=62&v=V6H3qxoHnQI&feature=emb_logo

Rishi Kohli’s view on nifty moving to 12000 level from cureent 11750 with 200 points spike. Covered specific stock like Tech Mahindra, Maruti.

Topic/Title- Rishi Kohli of ProAlpha Capital speaks on what to expect from Budget 2019 Media Platform- ET Now Date-Jan,2019

https://www.youtube.com/watch?v=g7ZP3fduhuA&feature=emb_logo

Impact of budget on the financial market on  nifty, bank nifty indices. Discussion about the specific stocks like RIL

Topic/Title- Talks About Fundamentals Of The Market Media platform – ET Now Date-Aug,2018

https://www.youtube.com/watch?time_continue=6&v=-GEtYTaBjs0&feature=emb_logo

Effect of Turkey economic crisis on India. Rishi’s view on generating alpha mix of high quality growth, few midcaps with earnings visibility. Followed by the discussion on ONGC sector and other specific stocks.

Topic/Title-  Media platform name-ET Now Date- August3, 2018

https://www.youtube.com/watch?v=vA29Y0b_Kko&feature=emb_logo

Pro Alpha portfolio didn’t perform well because of market volatility and market divergence. Discussed various stocks which affected the portfolio. 

Topic- Alternative Investment Summit – Panel Discussion  Media Platform-  Rishi Kohli (youtube) Date-Dec, 2013

https://www.youtube.com/watch?time_continue=4&v=90c2g9YDFQg&feature=emb_logo

Comparing alternative investment market in India with more mature markets. Evolution of alternative investments in India.

Analyst questions

  1. ProAlpha QG Dynamic Equity Fund (QGD) is a long only strategy which hedges against the bearish market using dynamic nifty hedging, Can you explain us the process of dynamic nifty hedging? Which instrument do you use to perform dynamic hedging is it futures or options?
  2. What is the basis of taking long positions in the equities; do you look at fundamentals of the company or make decisions based on broader market /sector perspective? With long only positions, how are you able to generate alpha?
  3. As it an open ended fund, what is the lock-up period for this specific fund after which an investor can redeem? How do you meet the redemption request? Do you maintain cash position?
  4. What is the benchmark against which you measure your performance?

Peer review – Shivani Kadam

Date – 11th May 2020.

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