EQAR Fund – Risk/Reward Analysis vs. Indices


EQAR Offshore Fund — Risk/Reward Analysis vs. Major Indices

Equity Market Neutral Strategy · India · Inception April 2017 through May 2026 · All returns in USD

For institutional investor use only. Past performance is not indicative of future results. This analysis is prepared for evaluative purposes only and does not constitute investment advice.
Summary Metrics — Inception to Date (Monthly, USD)
Strategy
EQAR Offshore Gross
Ann. Return14.3%
Ann. Volatility4.9%
Sharpe Ratio2.41
% Positive Months84.5%
ITD Return+240%

Share Class
EQAR Net 0-7-50
Ann. Return10.7%
Ann. Volatility2.6%
Sharpe Ratio3.24
% Positive Months90.0%
ITD Return+153%

Benchmark
Nifty 50 (USD)
Ann. Return6.3%
Ann. Volatility19.4%
Sharpe Ratio0.20
% Positive Months54.5%
ITD Return+75.6%

Benchmark
Nifty 500 TRI (USD)
Ann. Return7.5%
Ann. Volatility20.0%
Sharpe Ratio0.26
% Positive Months56.4%
ITD Return+94.3%

Benchmark
S&P 500 (USD)
Ann. Return13.6%
Ann. Volatility15.8%
Sharpe Ratio0.71
% Positive Months69.1%
ITD Return+221%

Key Insight
EQAR Net 0-7-50
Sharpe vs S&P 500+4.6× higher
Vol vs Nifty 507.6× lower
Return vs Nifty 50+4.4pp higher
Hit rate advantage+35.5pp vs N50

Part I — Full Period Analysis (Apr 2017 – May 2026)
Chart 1: Cumulative Performance — Growth of USD 100
Rebased to 100 at inception (April 2017). Gross return for EQAR Offshore; net return after 0% mgmt / 7% hurdle / 50% performance fee for EQAR Net 0-7-50. All series in USD.

EQAR Offshore Gross

EQAR Net 0-7-50

Nifty 50 (USD)

Nifty 500 TRI (USD)

S&P 500 (USD)

* EQAR Net 0-7-50 delivers 153% ITD with 2.6% annual volatility vs 221% for S&P 500 at 15.8% volatility — approximately 6× lower risk per unit of capital deployed.

Chart 2: Drawdown Profile (Underwater Equity Curve)
% decline from prior peak at each month-end. Illustrates capital preservation across all market regimes.

* Indian indices suffered ~33% drawdown in Mar 2020 (COVID). EQAR Net 0-7-50 peak drawdown was marginal (<2.5%), demonstrating true market-neutral construction.

Chart 3: Risk/Return Scatter — Annualised (Inception to Date)
Each bubble represents a strategy/index. Bubble size proportional to Sharpe ratio. Ideal positioning: upper-left (high return, low volatility).

* EQAR Net 0-7-50 occupies the dominant position: higher return than both Indian indices with a fraction of their volatility. Sharpe ratio of 3.24 vs 0.20–0.71 for benchmarks.

Chart 4: Monthly Return Distribution
Frequency histogram of monthly returns (%). Note the tight, right-skewed distribution for EQAR vs the fat-tailed index profiles.

* EQAR Net 0-7-50 generated a positive return in 90% of months (99/110). No month delivered a return below –0.75%. Indices experienced months as bad as –26.8%.

Chart 5: Monthly Return Consistency — All Periods
Monthly return bars for EQAR Net 0-7-50 (orange) vs benchmarks. Green = positive EQAR month; red = rare negative month.

* EQAR’s return profile exhibits near-monotonic compounding — consistent monthly contributions averaging ~0.85% with minimal dispersion.

Comparative Risk Metrics — Inception to Date
All figures annualised where applicable. Monthly data; USD-denominated.

Metric EQAR Gross EQAR Net 0-7-50 Nifty 50 (USD) Nifty 500 TRI (USD) S&P 500 (USD)
Annualised Return 14.3% 10.7% 6.3% 7.5% 13.6%
Annualised Volatility 4.9% 2.6% 19.4% 20.0% 15.8%
Sharpe Ratio 2.41 3.24 0.20 0.26 0.71
% Positive Months 84.5% 90.0% 54.5% 56.4% 69.1%
ITD Absolute Return +240% +153% +75.6% +94.3% +221%
Return/Volatility Multiple 2.90× 4.13× 0.33× 0.38× 0.86×
Volatility vs Nifty 50 4.0× lower 7.6× lower — ~1× (similar) 1.2× lower

Part II — Rolling 12-Month Analysis
Chart 6: Rolling 12-Month Returns — All Series
Each data point = compounded return over the prior 12 months. Illustrates return consistency across different market cycles. The grey shaded band highlights the 0% return threshold (loss territory).

EQAR Gross

EQAR Net 0-7-50

Nifty 50 (USD)

Nifty 500 TRI (USD)

S&P 500 (USD)

* EQAR Net 0-7-50 has never delivered a negative rolling 12-month return. Indices experienced rolling 12M losses as deep as –35% during COVID and –20% during the 2022 rate-hiking cycle.

Chart 7: Rolling 12-Month Volatility
Annualised volatility calculated over each trailing 12-month window. Demonstrates the structural stability of EQAR’s risk profile through varying market environments.

* EQAR’s rolling volatility has consistently remained below 8% in all periods. Index volatility spiked to 40%+ during March 2020.

Chart 8: Rolling 12-Month Sharpe Ratio
Risk-adjusted return (excess return over US T-bill rate) per unit of volatility on a rolling 12-month basis. Values above 1.0 indicate superior risk-adjusted performance.

* EQAR Net 0-7-50 has maintained a rolling Sharpe above 1.0 in the vast majority of periods. Indian indices have frequently delivered negative Sharpe ratios.

Chart 9: Rolling 12-Month Downside — Maximum Loss in Trailing Year
Worst single-month return within each trailing 12-month window. Captures tail risk evolution over time for each series.

* The worst single month in any 12M window for EQAR Net 0-7-50 has never exceeded –1.5%, providing a reliable capital protection floor for institutional investors.