After Sensex scare last week, India's top hedge fund is buying shares again

'We are deploying our cash as this market is poised for a short-term rebound,' said Andrew Holland, chief executive officer at Avendus

India’s top hedge fund has stopped hoarding cash and started buying shares again, expecting a bounce in the South Asian nation’s equities.

The Avendus Capital Alternate Strategies’ Absolute Return Fund is increasing investments after benchmark indexes slumped due to surging oil prices, higher borrowing costs and defaults at a local shadow lender. The intensity of selling for the S&P BSE Sensex Index last week hit levels not seen since the height of the 2008 financial crisis. That’s pushed Avendus to start unwinding its cash position, which reached a record 65 per cent of assets in September.

“We are deploying our