Monsoon Capital’s quantitative trading approach pays off
Mon Sep 26, 2011
In the wake of the financial crisis of 2008, diversification has been key to the re-emergence of Monsoon Capital as a multi-product pan-Asian firm
If the name Phoenix hadn’t already been bagged by
another fund manager, Monsoon Capital’s Gautam
Prakash might have been tempted to take it. In 2007 the
firm’s long-only small and mid-cap India
Inflection Fund, launched in 2004, was exceeding expectations,
gaining $500 million in the fourth quarter of that year to take
assets under management to a dizzying peak of $1.6 billion
– by no means small beer for a single-country Asian
Then came the market firestorm in late 2008 that stripped
90% off Monsoon’s AUM. While most funds that
sustained such heavy losses disappeared in the aftermath of the
financial crisis, Monsoon emerged from the ashes with its
investor base largely intact, with much the same-sized team, to
grow into a multi-product pan-Asian hedge fund firm.
The seeds of this recovery were sown before the crisis
struck, but they had not...
ISSN: 2151-1845 / CDC10004H
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