D-Street Talk podcast | Fund manager of India’s largest head fund hedged 70% of portfolio ahead of US elections

It is still difficult to predict as who would take the road to White House between Joe Biden and the current US President Donald Trump, fund managers back in India prefer to remain on the sidelines.

Nikhil Kamath who is a Co-Founder and CIO of India’s largest hedge fund, True Beacon and Zerodha in ‘D-Street Talk’ podcast told Moneycontrol that he is cautious, and has hedged 70% of the portfolio going into the event.

With over a billion dollars bet on the outcome of the election, the current odds stack at if you bet 100 dollars on Biden, you could make 153 dollars. This implies that Biden has a 65.2 percent chance of winning the election.

A 100 dollars bet on Trump will yield 287 dollars, which means he has a 34 percent chance of getting a second term.

“I would recommend taking suitable caution. We at True Beacon are hedged to about 70 percent of our portfolio going into the event. Stay away from taking leverage of any kind at the current juncture,” says Kamath.

He further added that markets are a great place to build long-term value, and shying away from calling unpredictable events periodically could add significant alpha over the long term.

(Tune in to the podcast for more)