From Investment Advisory to Hedge Fund: Our Journey of Scaling Alpha
Thank you for being a part of our journey :D
At Craving Alpha, what started as a quest to simplify investing evolved into a full-fledged hedge fund—Craving Alpha Wealth Fund. This transition marks a significant milestone, driven by our desire to enhance efficiency, expand opportunities, and provide a seamless experience for our investors.
The Genesis: From Advisory to Asset Management
Our journey began with investment advisory, focusing on crafting custom portfolios. We built a strong foundation with a data-driven, fundamentally anchored investment approach. However, as our client base grew, we recognized the operational complexities clients faced—portfolio rebalancing, managing trades, and ensuring compliance—all while keeping up with dynamic markets.
The solution was clear: transition to a hedge fund model. This shift allows us to manage capital directly, providing a streamlined process where investors enjoy the benefits of professional fund management without operational hassles.
Why a Hedge Fund Model?
1. Operational Simplicity:
Investors no longer need to execute trades or handle portfolio maintenance. Our hedge fund structure consolidates capital, making processes like rebalancing and hedging more efficient.
2. Scale and Efficiency:
Direct fund management enables us to scale our investment strategies while ensuring that every investor benefits from our research, data-driven insights, and execution efficiency.
3. Risk Management at Scale:
Our long-short strategy mitigates risks by balancing high-quality equity investments with thematic index hedging. This approach helps cushion downside volatility while capturing upside potential.
4. Seamless Compliance:
Managing compliance centrally ensures that we operate within regulatory frameworks while saving investors the complexity of individual compliance requirements.
Investment Philosophy: Consistency Through Innovation
Our strategy has always been about identifying high-quality businesses at inflection points—franchises with a margin of safety and scalable potential. We pair this with a quantitative overlay to reduce biases and enhance decision-making.
Launching Craving Alpha Wealth Fund allows us to execute this strategy at scale, where:
• Fundamental Insights Meet Quantitative Rigor:
Our proprietary algorithms optimize portfolio construction and adjust allocations dynamically.
• Active Risk Management:
We short thematic indices to hedge sector-specific risks and dynamically manage market exposure based on prevailing macroeconomic conditions.
• Long-Term Focus:
While we trade opportunistically, our core approach remains centered on long-term value creation through disciplined investing.
Looking Ahead: India’s Golden Decade
India’s evolving economic landscape underpins our optimism. With steady GDP growth, controlled inflation, and favorable interest rates, India stands at the forefront of emerging market opportunities. We believe this is India’s golden decade, and our hedge fund positions us to navigate this journey with agility and precision.
An Invitation to Partner in Growth
As we launch Craving Alpha Wealth Fund, we invite our supporters, clients, and readers to be part of this next phase. Our mission remains unchanged—delivering consistent alpha through innovative, data-driven strategies while minimizing operational friction for investors.
The journey from advisory to fund management wasn’t just about scaling a business; it was about creating a more efficient, investor-centric model. Thank you for being a part of our story so far—together, we’re optimizing risk to scale alpha.
Thank you,
Mayank Mehraa, CFA, FRM, MBA
Partner,
Craving Alpha