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

Gautam Prakash
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...

ISSN: 2151-1845 / CDC10004H


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