Estee Advisors Arbitrage I-Alpha PMS

I-Alpha PMS is Estee Advisors’ market neutral arbitrage product which aims to deliver consistent returns while maintaining nearly zero market exposure.

The algorithm for Estee Advisors Arbitrage I-Alpha PMS identifies mispricing between various market instruments at any given point of time and takes hedged positions to capture the pricing differences. The positions are hedged using equivalent risks (e.g., index futures against its components). In most cases, it can create a perfect hedge; however, in certain cases it is not able to create a perfect hedge as the equivalent instruments may not have the liquidity or listed products to take the required positions. In such cases, they construct the hedge with equivalent securities with as close a hedge as possible.

Estee Advisors Arbitrage I-Alpha PMS is an arbitrage product that does not take any directional bets. All the trades captured are balanced at the time of execution locking in a pricing gap opportunity. Price movement typically has minimal impact on the portfolio and underlying risk is typically expected to be the same, but there may be marginal price / venue risk as different sides of the arbitrage trade could be taken in different exchanges / markets.