Five reasons to consider RedHex Hybrid Long-Short Fund
In an environment where investors are looking for a balance between return generation, capital preservation, liquidity, and tax efficiency, the RedHex Hybrid Long-Short Fund offers a differentiated investment approach. By combining multiple return drivers within a disciplined risk management framework, the strategy aims to deliver a compelling investment experience across market cycles.
Targeting high accrual benefits and low volatility
Historically, investors relied heavily on fixed deposits during the 1990s and early 2000s, prioritizing safety and predictable returns. Over time, debt mutual funds emerged as a preferred avenue due to their relatively better tax efficiency and flexibility.
A core allocation to arbitrage and fixed income seeks to deliver fixed-income-like returns, while participation in credit opportunities aims to enhance returns through steady accrual generation.
Fit for all seasons
Consistent credit exposure seeks to generate healthy absolute income levels irrespective of overall market direction over the medium term. At the same time, the liquidity sleeve and arbitrage strategies help address short-term liquidity requirements efficiently.
Tax and Risk-Return efficiency
The strategy offers the potential benefit of long-term capital gains taxation after a 1-year holding period for listed securities and a 2-year holding period for unlisted securities at 12.5%, making post-tax returns potentially attractive compared to Category II AIFs that may involve higher credit risk and limited liquidity due to their closed-ended structure.
Robust risk management
Active portfolio management, supported by strict strategy-level risk controls, seeks to reduce portfolio volatility, provide downside protection, and deliver more stable investment outcomes over time.
Experienced investment team
The fund is managed by a highly experienced and specialized investment team with expertise across multiple strategies, including derivatives, credit, and special situations.
Bringing It All Together
With its focus on accrual-led return generation, all-weather portfolio construction, tax-efficient outcomes, disciplined risk management, and experienced portfolio management, the RedHex Hybrid Long-Short Fund is designed to offer investors a well-rounded solution for navigating evolving market conditions.
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Please read Investment Strategy Information Document (ISID) of the Fund for more details.
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