By Alpha Research

26 Miles Global Quant Fund

Aug 10, 2026

The 26 Miles Global Quant Fund is structured as an offshore-focused Category III AIF domiciled in GIFT City, India. Built on systematic, rules-based quantitative models, the fund seeks to capture directional and volatility-driven alpha across liquid global exchange-traded derivatives.

Fund’s strategy

Market-Direction Agnostic Architecture: The fund is engineered to generate consistent alpha regardless of macro bull or bear cycles. By combining trend-following models with relative value and mean-reversion sub-strategies, the portfolio maintains low directional beta to traditional equity markets.

Systematic Bias Elimination: By relying 100% on algorithmic trade initiation and exit rules, the strategy systematically eliminates human psychological pitfalls.

Multi-Strategy Asset Diversification: Capital allocation spans derivatives across equities, foreign exchange, and commodities, creating structural de-correlation. When one asset class consolidates in a range-bound environment, dynamic momentum or statistical arbitrage models in adjacent markets capture offsetting returns.

Track record of a separately managed account with the same strategy

Fee Structure

Management Fee: 2.0% per annum on Assets Under Management (AUM).

Hurdle Rate: 6.0% per annum (preferred return threshold for performance calculation).

Performance Fee: 20% to 30% on returns generated above the 6% hurdle rate.

Key Advantages

Tax Efficiency via GIFT City Framework: Under the IFSCA framework, derivative trading within GIFT City qualifies for 0% taxation on derivatives.

Uncorrelated Alpha & Crisis Resilience: Systematic quant strategies show near-zero correlation to broad market indices (MSCI World / S&P 500), providing genuine downside mitigation during market sell-offs.

Key Drawbacks

High Fee Drag: The combination of a 2% management fee and a 20–30% performance tier significantly reduces gross gains. Investors forfeit a substantial portion of upside above the 6% hurdle rate.

Sharpe Ratio Sensitivity to Net Returns: The fund's advertised Sharpe ratio is calculated using gross portfolio returns before fees and tax friction. When adjusted for the target net investor return (~18%–20% post 2% management fee, 20%–30% performance fee above the hurdle rate, and fund expenses), the net Sharpe ratio will be noticeably lower, reflecting a more moderate risk-adjusted yield profile for end investors.

Limited Track Record (September 2025 Inception): Because the fund’s official inception date is September 2025, it lacks an extended, multi-year live track record at the vehicle level.

Execution & Strategy Capacity Risk: Quantitative high-frequency and derivatives-focused models require strict capacity discipline. Market slippage or structural changes in market volatility could temporarily compress gross margins.

Regulatory Eligibility Exclusion (NRI & Foreign National Limitation): Significant Operational Restriction: The fund is restricted strictly to Non-Resident Indians (NRIs) and Foreign Nationals. Resident Indian investors are ineligible to participate under GIFT City Category III AIF foreign fund regulations.

Conclusion

The 26 Miles Global Quant Fund offers a compelling value proposition for international investors and NRIs seeking sophisticated, uncorrelated alpha through an offshore tax-efficient vehicle. While the 2% + 20–30% fee structure represents a noticeable hurdle between gross and net returns, the target net yield of 18% to 20% post-tax remains highly competitive relative to risk-adjusted global market benchmarks.

Prospective investors should look beyond gross performance metrics and determine whether the strategy's net, post-fee risk-adjusted return profile genuinely justifies the fee load and systemic quant execution risks. Investors are advised to wait until the fund establishes a verified, multi-year live track record as a pooled AIF vehicle before committing capital.

Best Regards

Prepared by:

Ayush Singh | Research Analyst

Neeru Seal | Partner

Alpha Capital

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