SIFs are designed to improve risk-adjusted returns: Edelweiss’ Bhavesh Jain

Our first product, the Altiva Hybrid Long Short Fund, has been designed to outperform fixed-income solutions. Internally, we benchmark ourselves against arbitrage plus 2-3%. We aim to generate additional returns through special situations such as initial public offerings, open offers, mergers and demergers, as well as derivative strategies such as covered calls, straddles, and strangles. These are not necessarily directional trades, but they can improve risk-adjusted returns compared with a plain arbitrage fund or a traditional fixed-income fund.