The majority of long-only alternative investment funds (AIFs) outperformed the Nifty in the month of June. The former gave average category returns of 7.2 per cent compared with 6.6 per cent given by the benchmark, data from PMS Bazaar for Category-III AIFs showed.

A9 Finsight’s Finavenue Growth Fund was the top performer with returns of 17.5 per cent. Motilal Oswal Asset Management’s Growth Anchors Fund and Alchemy Capital Management’s Leaders of Tomorrow were the other top performers with returns of 12.6 per cent and 12.1 per cent, respectively.

Long-short funds, on the other hand, struggled and gave average category returns of 3.2 per cent. Only five out of the 30 long-short funds managed to outperform Nifty. Edelweiss Asset Management’s Alternative Equity Scheme was the top performer with returns of 8.3 per cent. Altacura AI’s Maximus Fund (7.7 per cent) and Avendus Capital Public Markets Alternate Strategies’ Enhanced Return Fund-2 (7.3 per cent) made up the top three.

For the one-year period, Rational Equity Flagship Fund I was the top performer with returns of 98.8 per cent, followed by Prudent Equity’s ACE Fund with returns of 86.1 per cent. and First Water Capital Fund (82.7 per cent).

Long-only funds have comfortably outperformed long-short funds over a one year period, with average category returns of 47.2 per cent compared with 19.7 per cent.

A long-only fund takes only long positions. A long-short fund takes both long and short positions in the market and uses several alternative investing techniques such as leverage, derivatives and short positions to purchase relatively undervalued securities and sell overvalued ones.

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