Transwarranty Capital Pvt. Ltd. is a full service brokerage house with membership in BSE, NSE, and derivative segment of NSE. We manage funds for our clients using a fully hedged arbitrage strategy by buying equity shares for our clients with a simultaneous and matching sale position in derivative segment using futures.
In this investment model, we are following cost to carry investment strategy to earn the price difference / mismatch between these two segments of the market with absolutely no risk to the capital since investment is fully hedged and there is zero exposure to the market at any time, irrespective of the fact whether the market is going up or down.
On the last Thursday of every month, i.e. on the expiry of the future series, the price of the underlying shares in futures converges with the cash market price of the same share. And due to this mechanism we reserve the respective positions in both the cash and derivatives segments without incurring any time or impact cost.
Also from the initial investment date till the series expiry date, the volatility in the market gives ample opportunity to reverse and reinvest in the fully hedged model to improve the yield on the investment. |