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 hedge fund.
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...
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