Altiva Hybrid Long-Short Fund

In January, we continued to scale up deployment within the fund as our AUM scaled up rapidly. Our allocation to fixed-income remains concentrated in high-quality instruments and stood at 29.1%. We have further deployed excess cash in T-Bills (8.5% of AUM) to manage liquidity and provide flexibility for equity and derivatives trades.

Exposure to cash-future arbitrage and covered call/put strategies stood at 33.1%, continuing to offer attractive spreads of ~7% and 10–12%, respectively. Participation in special situation opportunities—including merger arbitrage, partly paid arbitrage, open offer and selective IPOs—was 5.2%. We have also participated in REITs and InvITs with exposure at 3.0% as we believe these instruments offer a better risk reward profile.

Derivative strategy with strangle and other option-based positions stood at 12.4%, as we are in the midst of results season. In this environment, the focus remains on strategies designed to deliver superior risk-adjusted returns—particularly covered calls, straddles, and strangles—while maintaining the flexibility to capitalize on emerging special situations.