Low-Risk-Quantitative Factor Based Strategy

Jupiter Alternative Investment Fund


Golden Jupiter Capital Management LLP is the Investment Manager of Jupiter Alternative Investment Fund I, which is an investment scheme of Jove Trust, a SEBI registered Category 3 Alternative Investment fund.

Jupiter AIF invests into equities and equity-related securities using a quantitative selection process constructed by the Investment Manager. This selection process involves creating investment model by ranking and scoring equities and equity related securities based on various factors such as volatility, momentum, mean-reversion, fundamentals and market sentiment/momentum (Alphagems).

The universe of equities includes already listed companies in leading Equity Indices like Nifty 50, Nifty Next 50, and Nifty Quality 30. Further, the Investment Manager uses a proprietary software technology to find the optimal combination of Index derivatives for portfolio protection (Index Trades) for a particular time period to maximize the potential profit, while managing the risk associated with these positions within a certain risk level. Alphagems and Index Trades together form the Fund’s “Investment Model”.


Suresh Raju

Fund manager & CIO

Mr. Suresh Raju is the fund manager & CIO of Golden Jupiter Capital Management LLP. He holds an MBA in Finance degree from University of Chicago’s Booth School of Business, based in Chicago, USA. He also has a M.S. degree in Engineering from The Ohio State University, Columbus, USA, and Bachelors in Technology degree from Indian Institute of Technology (IIT), Madras. Mr. Suresh has over 20 years of experience in the financial services industry, with about 8 years of experience in equity research, financial modelling, risk management, portfolio analytics for US based hedge/alternative investment funds, with about 5 years of experience as a fund manager and General Partner at TVS Capital Funds, which managed TVS Shriram Private Equity Fund, and about 7 years of transaction experience in the Investment Banking group at Deutsche Bank, Boston, USA in IPOs, M&A and Private Equity transactions.

Ramakrishnan Pudupatty

Portfolio Manager

Ram Pudupatty is the portfolio manager of Golden Jupiter Capital Management LLP. He holds a MBA from University of Washington, USA, a MS (Mechanical) from Michigan State University, USA and a B.E.(Hons) degree in Mechanical Engineering from BITS, Pilani. Ram has over 20 years of experience in the financial services and energy industry both in the US and India. Ram has more than 10 years of experience in investing in Indian equity markets and managing capital through Zuna Management Advisors Pvt Ltd. He has previously worked with Solar Turbines(Caterpillar), Ramgen Power Systems and Vedanta Resources.


Fund that Provides an Unique Investment Opportunity

Delivers the benefits of the upside of equity markets while minimizing the downside risks associated with equity investments using an appropriate portfolio protection.

The fund invests in two buckets under one umbrella namely, AlphaGems and Index Trades.

AlphaGems is a quant-based model that invests in top equities by considering several fundamental & technical factors, for a 3 to 12 month hold period.

Index Trade (our proprietary model), is a monthly hedge taken to protect the portfolio of stocks in the fund.

The AlphaGems and Index Trade together provides an attractive risk adjusted return.

Since both alpha gems and index trades are fully developed internally and have been tested for various market conditions, the fund has an in-depth knowledge of the risks involved in the two pieces for various market phases and is thus able to deliver a low volatility stock market type returns on the upside.

Annual returns targeted by this strategy is between 18% and 24%. This is made possible through the investments the fund makes in highly liquid good quality stocks that are on the verge of upside breakouts, which are identified by Jupiter’s proprietary quantitative strategy. While such investments done in quarterly cycles deliver strong returns on the upside, a portfolio level hedge which is taken every month using index derivatives, protects the portfolio when the market slides down. The hedge is structured using proprietary models, which have been extensively tested in markets, and this typically provides returns as the market slides along with a small opportunistic bet on the upside, which acts to counter the loss in the investments in the stocks held in the portfolio.

Taken together, the long side investments in stocks and the short side protection using the portfolio hedge provides investors with a return that is commensurate with equity market returns while minimizing the downside risks. A benefit of this investment strategy is that, irrespective of the market conditions, allocations can be made as there is always an opportunity to tailor the investments to the market conditions, without the threat of suffering significant losses at the portfolio level. Investment in this fund is ideal for those investors who seek returns close to market returns without the risk for permanent capital erosion.


Alpha gems, which is the core of the fund is made of investments in equities of companies that fall in Nifty 50, Nifty Next 50, Nifty Alpha and Nifty Quality 30 Indices. Investments are made using an in-house proprietary quantitative selection process that using a scoring and weighting method which takes into account fundamentals, technicals including near term momentum to select around 20-30 companies every quarter that have the highest probability of near term out performance.

Once the investments are made into these companies, these investments are tracked on a daily basis to see if the original investment thesis is violated. If such things happen, the investments are exited and replaced by companies that have the highest scoring at such times. This process of selective investments and monitoring ensures that the risks associated with these investments are limited in terms of portfolio downside movement, while the upside outperformance is maintained.

Index Trades

In addition, the portfolio protection Index derivatives trades, that is taken on a monthly basis, provides another level of protection for the investments made into alphagems

The index portfolio protection trade construction process is shown below, the objective of which is to take adequate portfolio protection each month at a reasonable cost, without going overboard in terms of cost or taking a protection at levels that may not be efficient.