Whitespace Alpha is a SEBI registered Category III Alternative Investment Fund (AIF)
Whitespace Alpha, as the name suggests, is an Alpha-focused fund. We have two funds currently operational with a total Assets Under Management (AUM) of INR 251 Crores. The funds are:
Whitespace Alpha – Fund 1 (Equity Plus Fund) buys only the Nifty50 stocks in the exact proportion, essentially mimicking the Nifty50. It then parks these stocks with the National Stock The exchange enables it to deploy its Market Neutral Options Strategies.
These strategies are based on mathematical models which harness the volatility in the market to generate Alpha. We have been beating the market month on month consistently for the past three years regardless of external factors.
This fund generates a total of 21-24% CAGR in a typical year. Around 11-12% through the Nifty50 stocks and another 9-12% through our Options Strategies.
Currently managing INR 41 Crores in AUM in Fund 1 as of February 2021. The Fund Lock-in period is three years.
Whitespace Alpha – Fund 2 (Debt Plus Fund) invests only into top-tier bank Fixed Deposits and high-grade Liquid Funds. It then parks these with the National Stock Exchange which enables it to deploy the same Market Neutral Options Strategies.
This fund generates a total of 13-17% CAGR. Around 4.5 – 5% through Fixed Deposits & Liquid Funds and another 9-12% through the Options Strategies.
Currently managing INR 210 Crores in AUM in Fund 2 as of February 2021. There is no fund Lockin period.
Fund Manager – Praveen Dwarakanath
Praveen Dwarakanath has been in the business of optimally managing financial assets over the last 12 years. As a part of his entrepreneurial journey, Praveen has been a part of an entity that completed its listing in the capital markets and ensured successful listing of the company in the
turbulent period post demonetization. He started his first startup Accendere with a capital of Rs. 40,000 and exited it at a valuation of USD 4 million.
Given a passion for mathematics, more specifically in the field of statistics, probability and calculus; the derivatives segment in the capital markets was the next logical step. Praveen has formulated market-neutral strategies that seek to generate an alpha return over the asset class deployed.
Praveen has since teamed up with other professionals who have helped him co-create complex but innovative strategies in the equity and commodity options space. His investment hypothesis has relied more on mathematical modeling and macro outlook as opposed to more traditional
methods that involve long-only stock picking.
Praveen has an MBA from IIM Lucknow passing out in the year 2009 and an Undergrad in Computer Science has helped him in the formulation, and testing of algorithms.