New Fund Launch: Sundaram Alternative Opportunities Fund

Feb 21, 2022

Sundaram Alternates, a fully owned subsidiary of Sundaram Asset Management Company, has launched Atlas - a diversified multi-sector Category III Alternative Investment Fund (AIF), that will invest across the cap curve.

The fund is Sundaram Alternates’ maiden fund in the open-ended Category III space and is looking at longer investment horizons with appreciation opportunities for 4+ years.

Atlas is open for subscription to domestic and international investors.

The fund will focus on structural equity and cyclical value opportunities, and predominantly play four themes - Capex ‘Maestros’ - businesses that have clear multi-year capex plans and have identified profitable opportunities to grow; Phygital Bluechips - traditional businesses adopting technology to gain market share, particularly in retail and BFSI; Consumption Czars - underpriced mid and small caps in areas of discretionary consumption and consumer durables; and Export Voyagers - Global goods and service providers with a Make in India, Sell in the World positioning.

“The four themes the fund will play show good potential. On discretionary consumption, we expect this summer will be a comeback for consumer durables. We are bullish on private sector banks and other financial services (wealth management, asset management, insurance) in BFSI. IT continues to be a core part of organizational decisions, and India is increasingly exporting IT services to the rest of the world, as well as manufactured goods. Traditional companies adopting IT to stay ahead of the curve have an edge over other smaller players,” said Sunil Subramaniam, Managing Director, Sundaram Mutual Fund.

In a growing country like India, every stage of economic development, provides investment opportunities. We are currently in a sweet spot. China + 1 has global brands looking to outsource - climate control initiatives and a rise in anti-dumping duties are moving businesses from China to India, not to mention the government’s PLI initiatives are proving lucrative for businesses.  Increasing capex will further boost the economy by creating jobs, increasing output and generating income – contributing to economic growth. A multi-cap, multi-sector fund is well poised to take advantage of these opportunities, and we believe the time is right for Atlas,” said Vijayendiran R, Chief Executive Officer, Sundaram Alternates.

The market in its inherent volatile nature provides two pockets for wealth. Firstly, markets are generally focused on near term growth and therefore tend to overlook the intrinsic value of long-term structural growth opportunities. It also tends to misprice ideas that are attractively positioned from a risk-reward perspective and are at the cusp of a business turnaround. Focusing on such opportunistic equity ideas along with a mix of structural stories is the key to delivering sustained alpha to our investors over a long term," said Madanagopal Ramu, Head – Equity, Sundaram Alternates.

Sundaram Alternates has a 10-year Portfolio Management Service (PMS) track record.

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