Bhavesh Jain: Edelweiss's Hybrid SIFs Offer Arbitrage-Plus Returns

• Edelweiss's Structured Investment Funds (SIFs) adopt a hybrid-first approach, focusing on building a credible track record with dedicated teams.
• Bhavesh Jain states the SIFs aim to deliver arbitrage plus 2.5-3% returns using strategies not permitted in traditional mutual funds.
• The strategy utilizes option writing (covered calls/puts) and participation in special situations like IPOs and M&A, avoiding directional short positions.
• SIF portfolios combine significant debt and arbitrage exposure with special situations to generate returns modestly above arbitrage through controlled sources.
• This hybrid-first SIF launch addresses a structural gap for fixed income investors due to tax changes, declining rates, and moderated arbitrage fund returns.

Why It Matters: This offers investors a new way to get better returns with controlled risk.