http://www.hedgefundsindia.com/blog en-us Mon, 04 Jul 2011 22:29:25 +0530 Main Page Blogware Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2011/5/7/4811909.html http://www.hedgefundsindia.com/blog/_archives/2011/5/7/4811909.html Sat, 07 May 2011 22:17:00 +0530 Hong Kong's Samena Capital and Swiss boutique private bank and money manager Reyl & Cie SA plan to raise up to $250 million in a seed fund that will invest in hedge funds focusing on Asia, the Middle East and North Africa. The two firms had committed $25 million to start Samena Angel Fund II, said Samena Capital founder and President Shirish Saraf, adding that Reyl would tap private bank clients to help expand the fund they expect to launch by October. The firms announced a joint venture combining Samena Asia Managers, Samena Capital's hedge fund seeding business, with Reyl & Cie on Tuesday. "That's the business we see going forward as a real synergy with REYL," Saraf told Reuters in an interview. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2011/5/7/4811901.html http://www.hedgefundsindia.com/blog/_archives/2011/5/7/4811901.html Sat, 07 May 2011 21:59:55 +0530 Two of the world's most successful investors have gone head to head over the price of gold, with the man who broke the Bank of England baling out of the precious metal and the man who made a fortune by betting against the American housing market talking it up. At the end of a week when plunging commodity prices fuelled speculation that the boom might be over, it emerged that George Soros– who made $1.1bn from betting against the pound in 1992 – has sold much of the gold and silver holdings he has built up in the past three years, realising an estimated return of 65% on his investment. By contrast, meanwhile, John Paulson, who made his hedge fund more than $20bn from betting against the US housing market by "shorting" sub-prime mortgages, this week told investors that he still has most of his personal money invested in gold. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/10/23/4662785.html http://www.hedgefundsindia.com/blog/_archives/2010/10/23/4662785.html Sat, 23 Oct 2010 21:25:04 +0530 Hedge funds investing in India are not making as much headlines as they did during the previous bull run in 2007-08, but they seem to be making money for investors . Good enough to be ranked among the best-performing hedge funds globally, according to analysts at Singapore’s fund research house Eurekahedge. The Eurekahedge Indian Hedge Fund Index returned over 5% in the first eight months of 2010 vis-à-vis 2% gains by benchmark Sensex in the same period. The numbers for September were not available. Asset managers attribute the decent performance of India-focused hedge funds to the buoyant stock market, ‘long only’ strategies by their managers and gains in mid-cap shares. Within Indian hedge funds, 68% of the funds employ ‘long-short’ equity strategy — a mix of buying assets as well as short-selling them — and more than 70% of the funds invest in equities, said experts. “Hedge funds are active in Indian equities,” Farhan Mumtaz, senior analyst, Eurekahedge told ET. “Funds with global and emerging market mandates have also increased their allocations to India,” he added. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/7/23/4585209.html http://www.hedgefundsindia.com/blog/_archives/2010/7/23/4585209.html Fri, 23 Jul 2010 00:44:30 +0530 Slowly but surely, India hedge funds are beginning to offer the kind of strategies that can attract big fish such as London hedge fund giant Man Group, whose fund of hedge funds business could make its first direct allocation to an Indian hedge fund within a year, according to Asia business head Patric Gysin. The entire Indian hedge fund universe is modest at around 50-60 funds. When that universe is boiled down to reveal those funds sophisticated enough to attract larger institutions and marquee fund of hedge funds (FoHF) investment from Europe or the US, it could more appropriately be described as a small planetary system – if one was feeling generous. The $15bn FoHF portfolio of London-based hedge fund giant Man Group, for example, is 10-15% exposed to emerging markets and 1% exposed to India. None of the latter exposure is achieved through direct investment into dedicated India-based hedge funds, but rather via the firm’s global emerging markets or pan-Asia funds, which then allocate a variable portion of their pot to Indian securities. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/6/5/4545372.html http://www.hedgefundsindia.com/blog/_archives/2010/6/5/4545372.html Sat, 05 Jun 2010 17:06:55 +0530 Despite Dubai Financial Group calling off its plans to sell stake in the Bombay Stock Exchange (BSE), Toronto-based investment broker Thomas Caldwell and philanthropist George Kaiser have managed to acquire shares in Asia’s oldest bourse. Over the past few months, Kaiser has acquired over 3 per cent in BSE, while Caldwell has increased his shareholding from 3.8 per cent last year to 4.25 per cent through multiple private deals, exchange officials said. They said the shares had been purchased from brokers, as well as some of the institutional investors in BSE. Along with US hedge fund legend George Soros and private equity firm J C Flowers, Caldwell and Kaiser were in the race to buy Dubai Financial Group LLC’s four per cent stake in BSE. Kaiser, through his private equity firm, Argonaut, was the highest bidder and had offered to pay Rs 370 a share. But, looking at the rush, embattled Dubai Financial deferred its stake sale plans in anticipation of higher valuations in the future, said a deal maker. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/4/24/4513131.html http://www.hedgefundsindia.com/blog/_archives/2010/4/24/4513131.html Sat, 24 Apr 2010 21:37:41 +0530 The US-based hedge fund Arcstone Capital LLC has made a passage to India by picking up close to 5% stake in the Kerala-based old generation private sector bank —Dhanlaxmi Bank. The fund has mopped up the shares in the bank through its investment vehicle Passage to India Master Fund Ltd. The Denver-based hedge fund has been scouring for value buys in India for the past couple of years. Aster Business Research Pvt Ltd is the sole advisor for the US-hedge fund in shaping its India strategy. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476760.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476760.html Wed, 10 Mar 2010 22:57:59 +0530 Global business in Mauritius is active mainly in the area of investment in India, Africa and China. Mauritius is a leading provider of foreign direct investment in India due to favourable treatment under the double taxation agreement between the two countries. Since the signing of the agreement, many investment and hedge funds have been (and continue to be) incorporated in Mauritius for the specific purpose of investment in India. The benefits of including Mauritius in investment in the Indian market are unparalleled, whether by way of a collective investment scheme, a closed-end fund or other investment vehicle. Institutions, like individuals, are making more calculated decisions to maximize productivity and reduce risk and unqualified expenses. A more cautious period for hedge funds is thus envisaged, with international clients rethinking large-scale refinancing and extending timeframes for existing projects. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476757.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476757.html Wed, 10 Mar 2010 22:54:55 +0530 According to separate amended Reg D filings with the U.S. Securities and Exchange Commission, two hedge funds managed by Bethesda-based Monsoon Capital have gathered $387.9 million total in pooled investment fund interests. Monsoon India Inflection Fund LP now has $163.1 million from 93 investors, while Monsoon India Inflection Fund 2 LP has $224.8 million from 167 investors. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476744.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476744.html Wed, 10 Mar 2010 22:37:51 +0530 Hedge fund investors could be left out of pocket as managers conjure up shortcuts to earn once again the lucrative bonuses based on performance fees that were a feature of the industry before the credit crisis. Despite 20 percent returns last year, big losses in 2008 mean that between a half and two-thirds of hedge funds are below high-water marks -- performance levels they must hit before claiming a 20-percent fee on a fund's profits. This could persuade more managers to move to new firms where they can start earning these bumper fees straight away, forcing clients to decide whether the quality of the managers justifies the additional cost and disruption needed to follow them. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476739.html http://www.hedgefundsindia.com/blog/_archives/2010/3/10/4476739.html Wed, 10 Mar 2010 22:33:38 +0530 Standard & Poor's, the world's leading index provider, announced today that it has licensed the National Stock Exchange of India (NSE), the largest stock exchange in India, to create and list Indian Rupee-denominated futures contracts on the S&P 500 (subject to regulatory approvals). The licensing agreement, jointly from S&P and S&P-licensee Chicago Mercantile Exchange to NSE, is part of a landmark cross-listing arrangement announced today by CME Group, the world's leading and most diverse derivatives marketplace, and NSE that covers benchmark indices for U.S. and Indian equities. The Rupee-denominated S&P 500 futures contracts will be made available on NSE via a sublicense from Standard & Poor's. Widely considered the single best gauge of the U.S. equity market since it launch in 1957, the S&P 500 is the world's most followed stock market index with nearly $1 trillion directly indexed and $3.51 trillion benchmarked to it. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457623.html http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457623.html Tue, 16 Feb 2010 22:44:02 +0530 It seems, foreign institutional investors’ (FII) have to wait some more time to enter into currency futures markets in India. The Reserve Bank of India (RBI) is not in favor of foreign institutional investors’ entry into currency derivatives, even as the futures market for currencies and commodities segments continues to grow strongly. In a joint meeting of regulators comprising RBI officials and the Securities and Exchange Board of India (Sebi) recently, the RBI expressed unwillingness to allow FIIs into currency derivatives and commodities futures where even domestic institutional players are not allowed entry. Average daily volume of currency derivatives for the current month till last week was Rs 30,190 crore on the MCX Stock Exchange and National Stock Exchange (NSE). In April 2009, it was Rs 4,677 crore. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457619.html http://www.hedgefundsindia.com/blog/_archives/2010/2/16/4457619.html Tue, 16 Feb 2010 22:41:19 +0530 Hedge fund strategies ended the first month of the year down 0.94 per cent as stocks pulled back amid fears about the global economy and the fiscal health of some Eurozone countries, according to the Lipper Hedge Fund Composite Index. Convertible arbitrage (-0.12 per cent) and credit focus (+0.27 per cent) led the performance league table for January. In contrast, other hedge (-2.67 per cent) and managed futures (-2.79 per cent) were the worst performing strategies. All equity-related strategies ended in negative territory in line with the global stock markets. Meanwhile, trend followers also posted losses, hammered by a correction in stocks and commodities. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/2/12/4454110.html http://www.hedgefundsindia.com/blog/_archives/2010/2/12/4454110.html Fri, 12 Feb 2010 21:25:01 +0530 Hedge fund manager Orchard Capital Partners, which spun-off Stark Investments in 2009, said it has launched a new long/short fund on Thursday which it aims to grow to $500 million in two-three years. The fund, Orchard Gemini, which began trading in January is expected to open up to outside investors in April 2010. Orchard was formed in October 2009 after Teall Edds and Stuart Wilson who were running Stark's Asia investments quit the Milwaukee-based hedge fund taking the firm's Hong Kong and Singapore operations with them.This new long/short fund will look to invest across the region, most notably in Australia, South Korea, Hong Kong, Singapore, Japan, India, China, Taiwan and Indonesia, said Orchard Capital in a statement. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2010/1/19/4432472.html http://www.hedgefundsindia.com/blog/_archives/2010/1/19/4432472.html Tue, 19 Jan 2010 21:26:17 +0530 The fast-growing BRIC group of economies will be back in favor in 2010 among emerging markets-focused hedge fund managers, who may shun European countries slammed by recession, an industry expert said. While strong growth is expected in Brazil, Russia, India and China, the European Commission expects the fiscal position of so-called PIIGS -- Portugal, Ireland, Italy, Greece and Spain -- to worsen even further in 2010. "Concerns about absorption of new government bond issues will affect the intermediate-to-long sector of the yield curve in those countries," Lipper hedge fund research head Aureliano Gentilini told Reuters on Friday. "Rating agencies will downgrade further the credit rating of PIIGS countries." Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382150.html http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382150.html Mon, 16 Nov 2009 23:36:28 +0530 A broad spectrum of participants are buying up gold as it sits at record highs, all hoping to add a little glitz to their portfolio. To be sure, some of the gold demand is from jewelry fabricators or buy-and-hold type investors such as those who purchase small bars and coins. But a large chunk is also coming from those who move in and out of the market more often. The sharp gains in gold -- up about 26% on the year -- have made it all the more alluring to these speculators who do not need physical metal and are making short-term bets on price direction. "All told, investors poured $552 million into gold bullion ETFs in October," a Morningstar report said. Some hedge fund managers who have been spotlighted for their investment in gold include John Paulson at Paulson & Co. and Greenlight Capital's David Einhorn. Mr. Paulson at one point this year held nearly 9% of the SPDR Gold Trust. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382142.html http://www.hedgefundsindia.com/blog/_archives/2009/11/16/4382142.html Mon, 16 Nov 2009 23:19:27 +0530 The hedge-fund industry may be on track to deliver its best annual returns in years, but many managers still aren't in a position to collect performance fees. Most hedge-fund fortunes were earned through the collection of performance fees, typically 20% of any profit. The fee structure gives managers an incentive to outperform and provides some protection for their investors. But in the third quarter, roughly two-thirds of funds globally still hadn't recovered from the steep declines of 2008, estimates Chicago data tracker Hedge Fund Research Inc., or HFR. About a quarter of funds were more than 20% below their previous high point, or high-water mark, and thus couldn't charge performance fees for this year's gains. The industry "is recovering, but not yet recovered," said Kenneth Heinz, HFR's president. For many managers, 2009 will be the second year in a row that they won't be pocketing performance fees. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360606.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360606.html Sat, 24 Oct 2009 23:34:06 +0530 Trading volumes in the currency futures segment of both the MCX SX and the National Stock Exchange (NSE) have risen by nearly 44 per cent in October so far, compared to last month. The rise, say experts, can be linked to a strengthening rupee, which went up 3 per cent against the greenback during this period. On NSE, over 1.68 million contracts have been traded in October so far, compared to around 1.17 million contracts in September. On the MCX SX, over 1.72 million contracts have been traded so far this month, compared to a little over 1.19 million contracts in September. The rupee, which has gained over 10 per cent from its March 2009 low of 52.17, was last traded at 46.74 against the dollar. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360602.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360602.html Sat, 24 Oct 2009 23:31:52 +0530 US hedge fund Wexford Capital LP is looking to buy equity stakes in Indian hydroelectric power generation companies and has chalked out a plan to invest Rs 500 crore in the country. The fund house will make investments through its wholly-owned subsidiary, Indus Renewable Energy India. At present, Indus Renewable Energy does not have any operations or any downstream investment. A person familiar with Wexford’s expansion plans in India said Indus Renewable Energy has already sought approval from foreign investment promotion board(FIPB) to make investment. Wexford Capital LP is an investment advisor with over $5 billion of assets under management. The firm, which was formed in 1994, manages a series of hedge funds and private equity funds. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360600.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360600.html Sat, 24 Oct 2009 23:28:05 +0530 Life could become tougher for hedge funds and private equity firms, with the European Union and US policy makers considering stricter regulations for the trillion dollar industry. The watchdogs are aiming to fill in the gaps in the system and have called for greater transparency in the funds’ investment style, periodic disclosure of portfolio, besides limiting their aggressive leverage. The proposal, if implemented, could impact India too, say industry observers. This is because most of the funds that invest in India are from these countries. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360596.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360596.html Sat, 24 Oct 2009 23:24:29 +0530 PMA Capital Management has launched a new India fund, which focuses on alpha generation from long and short positioning in the top 250 Indian companies according to market capitalization. The new vehicle, the PMA India Fund, utilizes a mix of rigorous qualitative and quantitative processes that combines a top-down discipline with bottom-up analysis. The PMA India Fund is being managed by Anoop Villait, who heads the PMA India Strategy and has over 15 years of experience in the Indian markets, as well as an extensive contact base with Indian corporates and foreign banks. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360591.html http://www.hedgefundsindia.com/blog/_archives/2009/10/24/4360591.html Sat, 24 Oct 2009 23:21:41 +0530 Galleon, which is winding up after its founder was charged with masterminding the biggest-ever insider-trading scheme involving hedge funds, has sold almost half its stake in one of the three Indian listed firms it directly holds shares, stock exchange data showed. New York-based Galleon sold 950,000 shares in Indian engineering firm Shriram EPC at 223 rupees ($4.8) a piece to cut its stake in the firm to about 2.4 percent from 4.6 percent, data from the National Stock Exchange showed. The move comes after investors asked Galleon, which managed $3.7 billion, to return funds and as the founder Raj Rajaratnam told investors and employees he was winding down the Galleon funds. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/19/4355598.html http://www.hedgefundsindia.com/blog/_archives/2009/10/19/4355598.html Mon, 19 Oct 2009 21:33:52 +0530 US hedge fund Wexford Capital LP is looking to buy equity stakes in Indian hydroelectric power generation companies and has chalked out a plan to invest Rs 500 crore in the country. The fund house will make investments through its wholly-owned subsidiary, Indus Renewable Energy India. At present, Indus Renewable Energy does not have any operations or any downstream investment. A person familiar with Wexford’s expansion plans in India said Indus Renewable Energy has already sought approval from foreign investment promotion board(FIPB) to make investment. Wexford Capital LP is an investment advisor with over $5 billion of assets under management. The firm, which was formed in 1994, manages a series of hedge funds and private equity funds. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347802.html http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347802.html Sun, 11 Oct 2009 23:12:12 +0530 Hedge fund struggled to keep pace with equity markets in September, with the Hennessee Hedge Fund Index gaining 3.18% during the month (20.89% YTD). At the same time, the S&P 500 increased 3.57% (17.03% YTD), the Dow Jones Industrial Average increased 2.27% (10.66% YTD), the NASDAQ Composite Index advanced 5.64% (34.59% YTD), and the Barclays Aggregate Bond Index advanced 1.05% (5.72% YTD). “Hedge fund managers we talk to are concerned that the markets are rallying while the real economy is shrinking,” said Charles Gradante, co-founder of hedge fund advisory the Hennessee Group. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347798.html http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347798.html Sun, 11 Oct 2009 23:03:46 +0530 The quality of overseas money being invested in Indian stocks seems to be getting better. Despite the return of foreign institutional investors (FIIs) to the market chasing a zooming Sensex, the bellwether Indian equity index that has gained 77.53% since January, the exposure of hedge funds to local stocks has dipped significantly. This could mean that the overseas money currently being invested in Indian stocks is here for the longer term. According to Singapore-based hedge fund tracker Eurekahedge Pte Ltd, hedge fund assets in India were $6-7 billion (Rs28,740-33,530 crore today) at the end of August, sharply down from $18 billion at the end of December 2007, at the height of the bull run. The Sensex hit its lifetime high of 21,206.77 in January 2008. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347796.html http://www.hedgefundsindia.com/blog/_archives/2009/10/11/4347796.html Sun, 11 Oct 2009 23:00:04 +0530 Hedge funds have made a mint this year betting on gold, and they hope their latest big commodity bet is just as sweet. Hedge funds are investing in raw sugar futures in a big way, Bloomberg News reports, helping to double the price of the white stuff since the spring. Sugar last week traded at a 28-year high. According to the U.S. Commodity Futures Trading Commission, long bets on sugar are up 77% this year. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319292.html http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319292.html Sat, 12 Sep 2009 14:14:13 +0530 The price of gold could rise as high as $1,600 an ounce as investors opt for assets with lasting value rather than volatile currencies, says one hedge fund manager who has increased his exposure to the precious metal. "All the fundamentals are in place. If it breaks last year's high it can go to $1,200 to $1,400 quite quickly," Pedro de Noronha, managing partner of Noster Capital told Reuters in an interview on Tuesday. Spot gold rose through the psychologically significant barrier of $1,000 an ounce this week-- its highest since March 2008 when it hit a record $1,030.80. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319290.html http://www.hedgefundsindia.com/blog/_archives/2009/9/12/4319290.html Sat, 12 Sep 2009 14:12:23 +0530 US-based hedge funds DE Shaw and Citadel Investment Group have filed a winding-up petition against Venus Remedies, after the Chandigarh-based company defaulted on a foreign currency convertible bond (FCCB) issue. New York-based DE Shaw, which has invested in several Indian companies such as DLF Assets, and Chicago-based Citadel Investment subscribed to a $12-million FCCB issue of Venus Remedies in May 2006. The bonds came up for redemption on May 2 this year, but company failed to pay the investors. This is the first time that an Indian company is slapped with a winding-up petition — a formal request to a court for the compulsory liquidation of a company — by FCCB investors. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300323.html http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300323.html Wed, 26 Aug 2009 12:30:02 +0530 Europe's largest hedge-fund manager has set up two Mauritius-based vehicles as a way for its flagship global-macro fund to invest in India, underscoring the growing interest in the region. London-based Brevan Howard Asset Management LLP, which manages $24 billion, said in a stock-exchange filing late last week that it had created two funds in Mauritius to hold Indian investments for its flagship Brevan Howard Master Fund. That $15 billion fund pursues a freewheeling global macro strategy, investing in instruments its managers expect to be influenced by global economic themes. A spokesman said Mauritius funds are a standard way to invest in India for those who want to keep assets offshore. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300320.html http://www.hedgefundsindia.com/blog/_archives/2009/8/26/4300320.html Wed, 26 Aug 2009 12:27:57 +0530 As individual hedge funds recover in the first half of 2009, hedge fund of funds are still suffering heavy redemptions. A recent study of the top 50 hedge funds of funds found all but two funds have not recovered from the drop in assets since September 2008. Assets in hedge funds of funds fell from a spike of $825 billion to just $530 billion in June. This is a staggering loss for the hedge fund of fund industry which has increased at a rate of more than 20 percent annually from 2000-2008. Main Page Hedge Funds India http://www.hedgefundsindia.com/blog/_archives/2009/7/31/4273123.html http://www.hedgefundsindia.com/blog/_archives/2009/7/31/4273123.html Fri, 31 Jul 2009 12:47:08 +0530 Assets under management of foreign institutional investors (FIIs) slumped 39 per cent in the 18-month period ending June 30, broadly in line with the drop in stock prices from the peak recorded in January 2008. According to data released by SEBI last week, FIIs’ asset base shrank to Rs 6,29,647 crore towards the end of June from Rs 10,27,141 crore recorded at the end of 2007. The benchmark, BSE Sensex, declined 28 per cent in this period while the broad-based BSE-500 and the BSE Mid-cap indices are down 36 and 48 per cent respectively. SEBI released this data for the first time on Friday. According to Mr Gul Teckchandani, an independent strategist, some of the investments FIIs made in mid-cap stocks at the peak are still quoting 50-75 per cent lower from that level. This explains the slightly larger value erosion of FIIs’ asset base. Main Page