Dolat Capital forays into AIF space; launches hedge fund under LLP structure

The fund is set-up in the form a LLP and not a trust, with an endeavour to provide efficient and simple taxation structure currently available for investors in a Category III AIF, which is a hedge fund and follows a derivatives trading strategy. Dolat Capital said the fund intends to generate stable and consistent absolute returns, at all points in time irrespective of equity and fixed income market conditions.

Dolat Capital Market on Wednesday entered into alternative investment fund space with the launch of a hedge fund under the LLP structure, which intends to raise Rs 250 crore in the initial tranche. The fund -- Dolat Absolute Return LLP-- is the country's first hedge fund under category-III alternative investment fund (AIF) on LLP (limited liability partnership) structure, the securities broking firm said in a statement.

Globally, limited partnerships are quite popular as fund structures for investment in securities."The fund intends to raise Rs 250 crore only in the initial tranche," Dolat Capital said. The fund is set-up in the form a LLP and not a trust, with an endeavour to provide efficient and simple taxation structure currently available for investors in a Category III AIF, which is a hedge fund and follows a derivatives trading strategy.

Dolat Capital said the fund intends to generate stable and consistent absolute returns, at all points in time irrespective of equity and fixed income market conditions. The annualized gross target return of the fund is 12-14 per cent CAGR irrespective of equity and fixed income market conditions..

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