Emkay launches small-cap-focused hedge fund

Domestic brokerage Emkay Global Financial Services has launched a Category-III alternative investment fund (AIF), Emkay Emerging Stars Fund. Category-III AIFs are hedge funds allowed to invest in listed companies. Emkay Emerging Stars will be a fiveyear closed-ended fund and will focus on companies with a market cap between ~500 crore and ~5,000 crore. The fund has received investment commitments of around ~300 crore. “In the last few years, especially during 2013 to 2016, small-cap and mini-cap companies have delivered better return on equity and return on capital employed. We will be targeting these securities as the investment universe for the fund,” said Sachin Shah, fund manager, Emkay Investment Managers.