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Ace fund manager, Prashant Jain has applied for Category III AIF with the market regulator, shows SEBI’s website.
His company name is 3P Investment Managers which reportedly stands for prudence, patience and performance. To start with, the company has applied for 3P India Equity Fund.
Category III AIFs are often synonymous with hedge funds, but in practice there are two kinds of Category III funds. First, there are long-only funds where AIF fund managers run thematic long-only ideas like an equity mutual fund but with lighter restrictions. Second, there are hedge funds, which use strategies far more complex than a typical mutual fund. These funds use strategies such as long-short derivatives and leverage to give returns with minimum risk.
Cat III AIFs are also allowed to employ leverage strategies i.e. borrowing to invest. Currently, they can borrow 200% of the fund size.
In the past, veteran fund managers like Kenneth Andrade, Pankaj Murarka and Sunil Singhania have set up their own AIF or PMS firms.
