The investment philosophy of ICICI Prudential Long Short Fund- Series I – Category III AIF differs with different market conditions.
• Up Market: In a bullish market, the ICICI Prudential Long Short Fund- Series I – Category III AIF aims to be positively correlated. Strategy may lag the market due to a lower net exposure. Investment Manager may add value if long appreciates more than the short basket.
• Down Market: In a bearish market, the ICICI Prudential Long Short Fund- Series I – Category III AIF aims to be inversely correlated. Strategy aims to have a lower drawdown in a correction phase of the market due to a lower net exposure. Investment Manager may add value if short position declines more than the long basket.
• Sideways Market: In a sideways market, the ICICI Prudential Long Short Fund- Series I – Category III AIF aims to generate absolute returns. Strategy aims to outperform the market in these phases as divergence of stock returns within the sector can be a potential source of alpha.