Shaan Patel Asset Management launches first Alternative Investment Fund with a flexi-cap approach

Time of India

10-07-2025

In a strategic move aimed at redefining active equity investing for sophisticated investors,
Shaan Patel Asset Management
has officially launched its first
Alternative Investment Fund
(AIF) under the Category III segment.
The open-ended fund, which goes live on Thursday, has already attracted Rs 25 crore in investor commitments, ahead of its official rollout, signaling strong market interest.
With a target corpus of Rs 200 crore, the new AIF is designed to cater to High Net Worth Individuals (HNIs) and family offices seeking a more agile, data-driven approach to equity investing.
The minimum investment amount is set at Rs 1 crore, catering to investors looking to build long-term wealth through a differentiated, systematic, and forward-looking approach.
The fund will follow a flexi-cap strategy, investing across large-cap, mid-cap, and small-cap stocks while maintaining a maximum allocation of 10% per individual stock.
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The portfolio will remain concentrated, holding just 12–15 high-conviction ideas driven by a combination of deep fundamental research and quantitative analytics.
At the heart of the fund's strategy is an 'intelligent churning' model, a proprietary approach that allows the fund to generate alpha repeatedly along a stock's growth journey.
By entering and exiting positions dynamically based on valuation signals, the fund aims to reduce average purchase costs, lock in profits, and enhance long-term compounding — all while actively managing downside risks.
'We don't believe in simply buying and holding indefinitely. Instead, we actively monitor every position, taking partial exits when valuations stretch and re-entering when opportunities arise — creating multiple points of alpha generation along the way,' Shaan Patel, CIO at Shaan Patel Asset Management, said.
'Our quant-driven signals guide these moves with discipline and precision, enabling us to reduce drawdowns, lower average costs, and compound returns more effectively,' he added.
'We firmly believe that the future of investing lies in being active, data-driven, and adaptive rather than passive and reactive. This approach empowers us to consistently capture market opportunities while protecting investor capital on the downside,' highlighted Patel.
The fund will be benchmarked against the NIFTY 500 Index, and is engineered to consistently outperform it through a systematic, active, and adaptive investment style.
The strategy aligns with a growing trend among modern investors who are increasingly gravitating toward quant-based and sector-focused funds that can respond to market volatility and tap into emerging themes.