World's Leading Hedge Funds Pour Rs 6,000 crore into Indian StocksAn unusual interest in recent share sales by Indian companies were taken by some of the world's largest hedge fund.
Brevan Howard, Soros Fund Management and other marquee global hedge funds have latched onto share sales meant for institutional investors, pumping as much as Rs 6,000 crore into Indian stocks in the past month.
A sizeable chunk of investments in such qualified institutional placements (QIPs) by these asset managers is part of a trading strategy involving shares and futures contracts, according to sources in investment banks and broking firms. Seven companies, including JP Associates, GMR and Reliance Communications, have raised close to Rs 15,900 crore in less than a month.
Investment bankers said hedge funds had to be roped in to subscribe to these share sales — especially those which raised money more recently — with the traditional foreign institutional names remaining undecided. At least 18 large hedge funds have invested in the recent QIPs, said three investment banking sources.Source: Economic Times