Investment Strategy

The Profusion Absolute return PMS essentially aims to generate returns from three primary income streams.

Fixed income returns from Liquid funds, overnight funds and fixed deposits. On average 70-80% of client assets will be in a combination of liquid funds, overnight funds and fixed deposits, generating a steady income stream.
Low risk long short trading will generate a second layer of returns: The Long short strategy will be market neutral to the extent of not taking more than 20% net exposure in either direction, average net exposure typically is in single digits.
A third return stream will come from special situations investment and trading including merger arbitrage, buybacks, spin offs, FPOs, block deals and other special situation opportunities that may present themselves from time to time.

Risk Management

We focus on managing and mitigating underlying risk, which is crucial for delivering steady returns with low volatility

Our long-short trading strategy is low risk and net long or short exposure will typically not exceed 20% of AUM. Average net exposure in the past several years has been around 6-7%. We are market direction and sector agnostic and aim to keep ratcheting gains in both up and down markets, while keeping drawdowns low via strict stop losses when positions go against us. The strategy works best in steady trending markets in either direction or in orderly mean reverting markets.
During period of extreme volatility and choppiness we would typically reduce our gross and net market exposure to avoid getting stopped out of our positions due to excessive volatility and for short periods may stay entirely out of markets if the environment is not conducive for long short trading.

Registered Address

302 Moti Villa, Azad Road, Vile Parle East, Mumbai Maharashtra 400057.

Office addresss

85 Sunder Nagar, New Delhi- 110003 Tel.No:- 011-36714322.