Last month, the Reserve Bank of India (RBI) enhanced the limit for investments overseas under the Liberalised Remittance Scheme, where all Indian resident individuals, including minors, are allowed to freely remit up to USD 250,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
Earlier this month, EquNev Capital has launched the distribution of K1T Capital is a systematic quant based hedge fund to the Indian investors to leverage the enhanced limits under the LRS 2015. K1T Capital has developed proprietary algorithms that are designed to capitalise on the volatility of U.S Equity markets specifically the S&P 500 and S&P 400 on the NYSE (New York Stock Exchange) and invests in the NYSE directly taking positions once daily.
K1T Capital has back tested its proprietary algorithms on the S&P 500 and S&P 400 of NYSE. Of the 68 quarters, since 1998, in the back test there were only 2 quarters giving negative returns to the investos. 97% of quarters were positive.
K1T Capital has appointed some of the leading professional services companies to manage and advise the fund. These include: Apex Fund Service, as the fund administrators; Deloitte as the auditors; Binghams as the legal advisors; Interactive Brokers and Linear Investments as the prime brokers. For the international investors, including Indian investors, K1T Capital has set up a feeder fund based out of Cayman Island that invests into U.S equities markets through the trading system set up by K1T Capital Fund.