The Draft Report of the Committee on Financial Sector Reforms headed by Professor Raghuram Rajan was issued for comment in April 2008. Among the proposals that the high-level committee made was the introduction of domestic hedge funds. The committee feels that, “The presence of hedge funds would induce greater competitive pressure for other regulated fund management channels such as mutual funds.” This week’s article discusses the benefits of introducing hedge funds in the Indian market. It shows how hedge funds could improve asset price efficiency. Besides, such funds, by virtue of their diverse investment styles, could provide investors an opportunity to enhance their risk-adjusted portfolio returns.   more »

Kuwait-basd Global Investment House has launched The Mayur Hedge Fund, a long short absolute return growth oriented fund with a net long bias. This is the first direct India-focused product by Global which will aim to achieve capital growth and provide investors the opportunity to benefit from the long term growth of the Indian market, according to a press statement. (Ameinfo)   more »