A select group of Category III long-short AIFs generated positive returns in September 2026 even as the Nifty 50 fell more than 6%, its weakest month since March, driven by a US Fed rate hike, oil prices above $100 and heavy foreign selling.
Swyom Advisors’ India Alpha Fund led with a 6.8% gain, followed by SBI’s Optimal Equity and PESB Alpha Fund, both above 4%, while most peers in the category still finished the month in the red.
Multi-strategy long-short that combines listed equity, corporate actions and late-stage unlisted opportunities. Delivered the highest absolute and relative return among all Cat-III long-short AIFs in September while the Nifty fell 6.1%. The manager (Swyom Advisors) has just filed its BSE SME DRHP; the fund’s AUM is around Rs 315 Cr and the firm itself is small but high-margin.
Aggressive long-short strategy from one of India’s largest AMCs. Managed to stay solidly positive in a broad market sell-off that hurt most equity and long-short products. One of the few large-house aggressive long-short funds that consistently features near the top of monthly rankings.
Relatively new Flexi-cap long-short fund (inception November 2025) with a disclosed AUM of Rs 50 Cr. Produced one of the strongest absolute returns in its first major stress test month. Combines core listed holdings with some unlisted exposure and tactical cash.