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