HSBC Unique Opportunities Fund | Value Research This three year close-ended fund will invest in companies facing special circumstances like turnaround, financial restructuring, merger, new product launch, etc.
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HSBC Unique Opportunities Fund

The fund is a three year close-ended equity fund which will convert into an open -ended fund after its three year tenure. It will be open for subscription from February 2 to February 22, 2007.
The investment strategy is to identify opportune bets in companies identified as facing “out of ordinary” conditions. The AMC defines “out of ordinary” situations as event-driven conditions that render the company undervalued relative to its long term potential. This would include circumstances such as turnaround situations, financial restructurings, mergers & acquisitions, divestments, employee/ management buyouts, new product/business launches, asset plays (companies selling at significant discount to intrinsic value), new laws/ regulations, etc.

The equity portfolio of the fund will constitute stocks with moderate to high volatility. The minimum investment in equities would be 65 per cent of the assets.

The units of the fund can be redeemed on any business day and on redemptions before the tenure the investor will have to bear the unamortised issue expenses.
HSBC India Opportunities is another equity scheme managed by Jitendra Sriram, which returned 48.12 per cent over a year (as on February 5, 2007) compared to the category average of 32.27 per cent for the same period. HSBC Advantage India (about a year old), managed by Mihir Vora, has managed to perform in line with its peers.
Snapshot
Unit cost during NFO: Rs 10
Type of fund: Close-ended
Options: Growth, Dividend payout and reinvestment
Minimum investment: Rs 10,000
Benchmark: BSE 200
Fund Manager: Mihir Vora and Jitendra Sriram
Offer opened: February 2, 2007
Offer closes: February 22, 2007



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