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AIF Category III

Avendus Capital

AIF Category III As on March 2026

"Alpha-first, benchmark-agnostic — generating absolute returns through disciplined long/short equity across India's listed markets."

payments AUM ₹85,000 Cr
calendar_today Founded 2001
folder_special Strategies 11
groups Total Clients 6,500+
update As On March 2026

About Avendus Capital

Avendus Capital is India's premier investment banking and alternate asset management group, with the Absolute Return Fund representing its flagship hedge fund strategy. The Cat III AIF deploys a long/short equity approach — holding concentrated long positions in quality compounders alongside short positions in fundamentally weak businesses via NSE F&O — with a net long bias of 40–60%. The strategy is entirely benchmark-agnostic, targeting 12–18% absolute returns across market cycles.

Avendus's equity research team covers over 300 listed Indian companies across sectors, generating proprietary earnings models, channel checks, and management assessments that feed both the long and short books. The risk management framework enforces position-level stop-losses, sector concentration limits, and gross exposure ceilings, ensuring drawdowns are managed actively rather than passively.

Key Attributes

  • verified_user
    SEBI Registration INH000001043
  • location_city
    Headquarters 901/902, 9th Floor, One BKC Tower B, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, Maharashtra
  • groups
    Investment Team 95 Investment Professionals
  • public
    Investor Base HNIs, Ultra HNIs & Family Offices
  • gavel
    Products AIF Category III – Long Short Equity
  • workspace_premium
    Memberships AMFI & IVCA Member since 2006
Philosophy

Investment Approach

Alpha from Both Books

Avendus believes the Indian equity market — with its high information asymmetry, diverse investor base, and frequent mispricing — offers exceptional alpha opportunities on both the long and short sides. The team exploits these inefficiencies through deep research-driven stock selection rather than systematic factor exposure.

Long Book Quality

Long positions in 20–30 companies with strong fundamentals, near-term earnings catalysts, and valuation support. Average holding period 12–24 months for the long book.

Short Book Discipline

Short positions in businesses with deteriorating fundamentals, over-leveraged balance sheets, or accounting red flags. Implemented via F&O with defined stop-losses.

Net Exposure Management

Net exposure dynamically managed between 30–70% based on market valuation, macro signals, and risk-appetite indicators, reducing market sensitivity in expensive periods.

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Institutional Enquiries

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Connect with our team to explore investment opportunities, mandate customisation, and onboarding with Avendus Capital.