RedHex Hybrid Long-Short Fund
RedHex Hybrid Long-Short Fund
(An interval investment strategy investing in equity and debt securities, including limited short exposure in equity and debt through derivatives)
Portfolio Construct
| Bonds: Rated ‘AA/A’ * & INVIT units > Robust credit selection |
Liquid Securities: AAA/Sov > Provides liquidity and stable accruals |
Fully Hedged Equity Exposure, No directional calls (except REIT units) > Arbitrage allocation aims to add relatively stable income |
|||||||
| Capturing opportunities offering healthy yield pick-up over AAA securities | Margin needs | Accrual product, stable yield | |||||||
| Locked-in yields provide a hedge against volatility | |||||||||
| Accrual product, Capital gains opportunity, stable yield | |||||||||
Portfolio Construction – target allocation
Diversification across segments, sectors, issuers
| Segments | Arbitrage | REIT units | AAA / Gsec / SDL | Financial Services | Non-Financials | INVIT units | |
| Targeted allocation | 25-35 per cent | 0-10 per cent | 10-15 per cent | 20-25 per cent | 15-20 per cent | 0-10 per cent | |
| Instrument | - | Units | Bonds | Bonds (10-15 per cent) | PTCs (10-15 per cent) | Bonds | Units |
| Average tenor | - | - | 3-5 years | 1-2 years | 1-2 years | - | |
- Utilizing multiple yield enhancement opportunities across segments
- Diversified across multiple sectors and issuers
- Controlled duration risk given the overall maturity of the fund likely to remain in 1-2 years
Portfolio Construction
A 50:50 mix of stability and alpha generation opportunities
| Non-Directional Equity Arbitrage | Provides stability, arrests volatility | |||||||
| High Quality Debt (AAA/G-sec) | Meeting margin requirements, Support liquidity |
| Yield Pick-up | Exposure to 'AA/A' rated debt issuers, Securitized Debt opportunities | |||||||
| Spread Compression | Potential upgrades resulting in capital gains, yield curve roll-down benefits as maturity reduces | |||||||
| REIT/INVIT investments | Combination of optimal distribution yields and capital appreciation potential |
Fund details
| Investment Strategy name | RedHex Hybrid Long-Short Fund |
|---|---|
| Category of Investment Strategy | Hybrid Long-Short Fund |
| Investment Objective | The investment objective of the Investment Strategy is to generate regular returns and capital appreciation by investing in fixed income securities and equity and equity related securities including limited short exposure in equity and debt through derivatives. There is no assurance that the investment objective of the Investment Strategy will be achieved. |
| Type of Investment Strategy | An interval investment strategy investing in equity and debt securities, including limited short exposure in equity and debt through derivatives |
| Benchmark | NIFTY 50 Hybrid Composite Debt 50:50 Index |
| Fund Manager |
Debt portion, InvITs and REITs: Shriram Ramanathan Equity: Venugopal Manghat, Arbitrage: Praveen Ayathan, Foreign Securities: Mayank Chaturvedi |
| Exit Load |
If the units are redeemed/ switched out on or before 1 years from the date of allotment – 2 per cent of the applicable NAV. If the units are redeemed/switched out after 1 years from the date of allotment – Nil |
| Subscription frequency | Daily (all business days) |
| Redemption frequency^ | Every Monday of the week |
| Min application amount |
Rs. 10,00,000/- and in multiple of Rs 1/- thereafter. For Accredited Investors – Rs. 1,00,000/- and in multiple of Rs 1/- thereafter |
| Notice Period | 10 working days (Investors placing requests for redemption/Switch Out /STP OUT shall receive/transfer the value of units based on the fund’s NAV at the end of the notice period.) |
Why add RedHex Hybrid Long-Short Fund to your portfolio...
| Targeting high accrual benefits and low volatility | Core allocation to arbitrage and fixed income aims to deliver stable returns. Alpha generation by way of steady accruals driven by participation in credit opportunities |
|---|---|
| Fit for all seasons | Consistent credit exposure aims to generate healthy absolute income levels, irrespective of overall market direction in the medium term, liquidity sleeve and arbitrage provide sufficient liquidity management to meet any short-term liquidity needs |
| Tax and risk-return efficiency | Investors benefit from long-term capital gains taxed over 1-year for listed and 2-years period for unlisted at 12.5 per cent, making post-tax returns highly competitive compared to Cat II AIFs with higher credit risk strategies and nil liquidity (closed ended) |
| Robust risk management | Active management and strict strategy level risk controls help reduce portfolio volatility, provide downside protection, and deliver more stable outcomes |
| Experienced investment team | Managed by a highly experienced specialized team with experience across strategies including derivatives and special situations |
Product Labeling
To provide investors an easy understanding of the kind of product / investment strategy they are investing in and its suitability to them, the product labeling is as under:
RedHex Hybrid Long-Short Fund
(An interval investment strategy investing in equality and debt securities, including limited short exposure in equity and debt through derivatives)
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
The product labelling of the Scheme available as on the date of this communication/disclosure Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of an e-mail or SMS to unitholders of that particular scheme.
^Redemption requests will be subject to Notice Period (defined below) and will be processed once a week (Every Monday*) as under: a. Redemption application received up to Monday* (before 3.00 pm cut-off time) will be processed at the NAV applicable at the end of the Notice Period. b. Redemption application received on or after Monday* (after 3.00 pm cut-off time on Monday*) will be processed on next Monday* at the NAV applicable at the end of the Notice Period. *Next business day in case Monday is a non-business day.
Source: HSBC Asset Management India, Data as on 30 June 2026
Source: HSBC Asset Management India. The aforesaid details indicates the tentative portfolio construct of the strategy post the launch of the same. The portfolio positioning would be based on prevailing market conditions and would be subject to changes depending on the fund managers views. For details on the strategy and asset allocation refer ISID.
Past performance may or may not be sustained in future and is not a guarantee of any future returns.
Refer to the INVESTMENT STRATEGY INFORMATION DOCUMENT (ISID) for more details on asset allocation.
SEBI Registered Name/Number-HSBC Mutual Fund/MF/046/02/5
Investments in Specialized Investment Fund involves relatively higher risk including potential loss of capital, liquidity risk and market volatility. Please read all investment strategy related documents carefully before making the investment decision.
Product & Market insights
Product Deck - RedHex Hybrid Long-Short Fund
Product Note - RedHex Hybrid Long-Short Fund
Blogs & Articles
Begin your journey here
Looking to dream big? Start your journey here.