Global hedge funds are boosting their presence in the long-shunned Indian market

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Many are tempted both by its growing depth and liquidity and its emergence as an alternative to investing in China

Global hedge funds are making a beeline to set up shop in India, a market long-shunned by international investors, tempted both by its growing depth and liquidity and its emergence as an alternative to investing in China.

“Traditionally, the main drivers of performance within our equities business have been Greater China and Japan,” Dymon co-CEO Mark Wong said. India’s stock market valuation has doubled in just three years to as much as $3.8 trillion in September, and that depth is enabling it to substitute China in global portfolios as investors flee battered mainland markets.

“Volume has picked up tremendously since COVID, so it’s become a situation where there’s enough volume to support market neutral quantitative trading that we see a real opportunity,” said Chauwei Yak, Gao’s CEO.

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