73%

-27%

100%

46%

Long Short Gross Net

Equity exposure

We saw NIFTY correcting by 5% from its peak but our cautious stance and agility to have

adequate hedges and stock shorts ensured we end the month on a positive note and

also marginally outperform the index.

Broader markets too corrected sharply, with the BSE Midcap and Smallcap indices underperforming to

deliver just 0.3% and 0.1%, respectively. Our contra call to be relatively positive on banking added to

the overall outperformance. Bank NIFTY was up 4.5% for the month.

Our key contributors for the month were our top weights, ITC and RIL. In addition, our negative view on

certain expensive names like Asian Paints, Polycab & others played out well in near term. We reduced

our overall net delta exposure to 55%-60% from almost 65% last month.

We continued to add banking names to our portfolio mainly due to their relative underperformance and

also reasonable valuation. We increased our weight to few reopening themes which reported stellar

results. We saw option segment starting to contribute as most company results failed to surprise street

expectation.

We have added the required index hedges to protect the portfolio due to the heavy long retail and HNI

positioning in single stock futures. Quality big ticket IPO pipeline will act as a major hurdle for market to

rally and make new highs in near term.

Fund/ Benchmark 1 Month 3 Month 6 MonthSince

inception

EDGE 0.91% 7.75% 16.98% 17.92%

Nifty 5 0 TRI 0.42% 12.35% 21.77% 21.76%

How we performed NAV as of 29th Oct ’21: 11.7921

Returns are for A1 class, net of management fees and expenses, gross of performance fees and taxes. Fund inception date: 5th Apr’21

A look at our portfolio

Exposure excludes investment in mutual funds and other securities for margin or temporary deployment of surplus funds

EDELWEISS DYNAMIC GROWTH EQUITY [EDGE] FUND - OCT’21

Click here for an audible synopsis of the month by our Fund Managers

So far 2/3rd of NIFTY companies have reported results and NIFTY earnings estimates at aggregate level

remains unchanged. However the internals continue to deteriorate with Auto and FMCG seeing significant

downgrades. This to some extent is offset by Banks. IT and Metals which has driven large part of upgrades

so far which have been broadly in line.

Government revenues are in very good shape with direct and indirect taxes surpassing budgeted estimates

which will ensure lower borrowing and range bound interest rates. We see housing sector continuing

to gain momentum. This will aid broad based improvement in economic activity.

We see growing risks to the market from ‘higher-for-longer’ inflation. We note that historical deep

corrections in the Indian market took place on specific events and/or earnings misses. We can only hope

this time it is not so because of negative inflation surprises.

Chinese economy is slowing down more than expectation which may pose threat to global GDP estimates

at a time when global liquidity will likely be withdrawn from January onwards. With this backdrop we will

continue to have a cautious stance and look for specific medium and long term growth opportunities.

Exposures are % of Total NAV; notional values for derivatives (including options) considered here

Top Five Stock Holdings

Quantitative

Indicators

Annualized

Volati l ity

Sharpe

RatioBeta

EDGE 6.30% 4.34 0.40

Nifty 5 0 TRI 12.01% 2.83 1

How we fared on the risk front

Our take on the month that was

HDFC LTD: Valuation below 2x FY23 book, impeccable

asset quality and recovering real estate sector will

drive above-average growth.

L&T: Beginning of the capex cycle with very low

competition will drive earnings for the company.

In addition, subsidiaries valuation have also increased

significantly.

Reliance Industries Ltd: GRMs have increased sharply

over last few months which will drive earnings

upgrade. With retail also re opening it will add to the

over profitability.

SBI LIFE: Strong growth in ULIP along with high VNB

margins will drive earnings growth.

5.8%

3.4%

3.4%

3.2%

2.9%

HDFC LTD

L&T LTD

RELIANCE

HCL TECH

SBI LIFE

Fund type Open ended Category III AIF

Fund Managers Ajay Vora & Nikhil Ranka

Minimum Investment INR 1 Cr

Subscription 15th and last working day of every month

Redemption Last working day of every month

Placement Fee Upto 2%

Management Fee (p.a. on average AUM)

Performance Fee Classes Fixed Fee Classes

A1 A2 A3 A5 B1 B2 B5

1.75% 1.50% 1.00% 1.00% 2.25% 2.00% 1.75%

1-5 Cr 5-10 Cr 10-25 Cr 25 Cr + 1-5 Cr 5-10 Cr 10 Cr +

Performance Fee 15% for class A1, A2, A3 | 12.5% for Class A5 (No catch up)

Hurdle Rate 10% pre-tax, post expenses with high water mark

Exit Load 1 % for exit between 0-12 months

Fund Expenses At actuals, capped at 35 bps

Custodian Edelweiss Capital Services Limited

Disclaimer: Edelweiss Dynamic Growth Equity Fund ("the scheme") is Category III Alternative Investment Fund – a scheme of Edelweiss Alternative Strategies Trust having SEBI Registration Number -

IN/AIF3/20-21/0857. Past performance is not an indication of future performance. Investments in the Securities Market are subject to Market Risk. Please read the Private Placement Memorandum (PPM) and

Scheme related documents carefully before investing. For a detailed Disclaimer, please click here

1Consistent returns across market cycles 2

Lock-in returns at regular intervals 3

Limit drawdownsduring extremevolatility

Objectives we’re striving towards

Fund Terms

Get the EDGE in under 2min!

Hear about EDGE from our fund managers!

AIF Benchmark indices as per benchmarking agency CRISIL – Not Applicable. The Scheme has not completed one year since its inception