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Capital Deployment

A fortress balance sheet constructed for all weather conditions.

Our portfolio is constructed on the principles of Modern Portfolio Theory (MPT), but enhanced by algorithmic execution. We maintain a strict non-correlation mandate: our equity strategies must not depend on the same macro-factors as our private credit book.

By blending high-frequency liquid strategies with long-term private holdings, we aim to generate absolute returns regardless of the inflationary or interest rate environment.


I.SYSTEMATIC PUBLIC EQUITIES

Strategy: Statistical Arbitrage & Mean Reversion. 

Universe: Nifty 50, Bank Nifty, & NASDAQ 100. 

Execution: 100% Automated via Python/Rust proprietary engines. We harvest volatility premiums while strictly managing tail risk.

II.Momentum & Trend

Strategy: Multi-factor Trend Following. 

Universe: Large-Cap Global Tech & Indian Industrials.

Execution: Capturing extended price dislocations in high-beta sectors. Our systems identify trend exhaustion points to exit before reversals occur.

III. PRIVATE MARKETS & CREDIT


While our algorithms hunt for alpha in public markets, our private book anchors the portfolio in reality. We deploy patient capital into assets that provide cash-flow visibility and inflation protection

  • Private Credit: Direct lending to high-growth SMEs and secured corporate debt instruments. (Target Yield: 12-14%).
  • Venture Capital: Strategic seed-stage investments in FinTech, B2B SaaS, and Data Infrastructure. We back founders who understand leverage.
  • Real Assets: Selective allocation to commercial real estate and REITs for tax-efficient yield generation.

The Optimization Manifesto


In a financial landscape often driven by speculative hype, Karanwal Capital adheres to a stricter standard. We do not measure success by raw returns alone, as high returns often mask excessive risk exposure.

Instead, we engineer our portfolio around three non-negotiable pillars of efficiency:

  • Defensive Engineering: Our primary mandate is to protect family capital. We aggressively prune 'left-tail' risk to prevent catastrophic drawdowns during market crashes.
  • Statistical Rigor: We utilize proprietary algorithms to strip away human emotion. Every trade is sized based on mathematical probability, not gut feeling.
  • Market Neutrality: Our strategies are designed to perform independently of broad market cycles. We aim to generate alpha whether the market is bullish, bearish, or stagnant.

By strictly isolating our portfolio from noise, we ensure that our growth is a result of engineered precision, not bull-market luck

>2.5

Sharpe Ratio Target


<15%

Max Drawdown Limit


0.12

Correlation to Market Index


100%
Algorithmic Execution

Engineered for Speed


We do not rely on retail brokers. We operate a custom Direct Market Access (DMA) ecosystem. By writing our execution core in Rust and our research layer in Python, we achieve institutional-grade latency

< 1ms

Execution Latency

Our Rust-based engine routes orders to the exchange faster than human reflexes allow

100%

Proprietary Code

Zero reliance on black-box vendors. We own every line of code from data ingestion to risk checks

24/7

Risk Sentinel

Automated algorithms monitor portfolio health and margin requirements around the clock, ensuring zero breaches

Active Mandates (FY 2026)

We are active acquirers of mispriced risk. We do not seek pitch decks; we seek data.

While our public markets book is 100% automated, our private capital deployment is relationship-driven. We are currently allocating capital into three specific silos

  • Venture Capital: Pre-Series A founders building 'financial infrastructure' (APIs, Data Pipelines, Payments). We prefer B2B over B2C.
  • Private Credit: Senior secured debt with < 24-month maturity. We look for asset-backed opportunities that provide cash-flow visibility.
  • Strategic Co-Investment: Syndicating larger deals ($1M+) alongside aligned Single Family Offices in India and SEA

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