Estee Advisors: A Quant - Based Investment Management & Execution Services Provider

Sandeep Tyagi,  Chairman

Sandeep Tyagi


Investment Management space in India is evolving rapidly and has undergone a major transformation over the past decade. The penetration of mutual funds in tier-2 and tier-3 cities and overall AUM growth has been phenomenal. The Alternative Investment Fund structure(launched by SEBI in 2012), meant primarily for sophisticated investors, has also seen several funds being setup. When SEBI (Indian capital markets regulator) permitted algorithmic trading in India Estee Advisors was setup by Sandeep Tyagi in 2008 with a vision to grow alongside the promising Indian capital market. Envisioning the involvement of algorithmic trading and systematic investments as a prime ingredient of the evolving Indian market landscape the budding stockbroker firm was focused on improving decision making in trading and investment management through automation, quantitative techniques, models, and eliminating human bias. A pioneer in building algorithmic investment and execution products with a strong track record in the Indian capital markets Estee Advisors is considered as one of the leading quant based investment management and execution services providers in India.

A registered broker dealer based out of Gurgaon with the major securities exchanges in India, Estee Advi¬sors is renowned for offering services across three lines of business i.e. prop trading, asset management, and execution services(broking). Offering quant based, market neutral investment products to HNIs, corporate treasuries, and family offices Estee’s flagship market neutral product, I-Alpha has not had a single negative return month since its inception in May 2009. Along with it, the proprietary trading group of the company is an active market maker across exchanges in Indian as well as global capital markets. Being one of the accredited algorithmic trading companies in India, Estee Advisors helps stock exchanges grow liquidity in selected scrips through market making services and often acts as a designated market maker for the exchange. Contributing a suite of trade execution and support services to global investors looking to trade in emerging markets Estee is also one of the leading providers of low latency brokerage services in India granting a suite of execution services, including brokerage services on all leading Indian exchanges as well as technical and infrastructural support.

An Interior View of the Firm
However rising from a grass root level to the summit of success was not an easy piece of cake for Estee Advisors. The general industry challenge was the unavailability of high quality talent for the strategy and technology oriented teams of the company due to the deficiency of proper skill set and lack of awareness of the area of algorithmic and quant trading. Apart from generic challenges
faced by the industry theorganization also struggled with the issues related to Asset management and execution services businesses.

Highlighting the initial challenges, Sandeep Tyagi, Founder, Estee Advisors states, “The primary challenges for our asset management was that we were a new and young firm and not a large brand such as HDFC or ICICI. Investors were less focused on the risk return profile of our investment products and more concerned about credibility. Most investors did not fully understand concepts of diversification and risk management and were only focused on return, instead of risk-adjusted return. For our execution services/broking business our value proposition was efficient and low cost execution. We pitched to several institutional investors whose primary focus was research and were used to a bundled service comprising research and execution. Also, there was major inertia towards technology adoption and improvement. We over came these challenges through our consistent performance”.

Estee is one of the leading providers of low latency brokerage services in India granting a suite of execution services including brokerage services on all leading Indian exchanges as well as technical and infrastructural support

Embellishing a very employee centric culture and policies that are intended to motivate employees and encourage new ideas and innovation the leading stockbroker firm pays special attention to develop the high performing employees along with those who are facing difficulties. Highly focused on nurturing young talent and bestowing them with rewards and development alternatives, Estee has come-up with several initiatives such as internal job transfers, internships and risk identification programs such as #makeitahabit to encourage employees to come-up with innovative ideas. This internal optimization of caliber through the development of employees have lead Estee Advisors to acquire high profile clients ranging from large HFTs algorithmic traders, corporate treasuries to high networth individuals.

Future and Further
Accomplishing many milestones through the journey, the success of Estee Advisors can be attributed to the unwavering focus on systematic and automated trading and risk management by the company. Estee Advisors was recently recognized as the Best Institutional Broker by NSE. The award validates its large market share, and its low latency and high availability platform. I-Alpha the flagship arbitrage fund of the firm has 10 years of track record of generating 13 percent return at a Sharpe of around 3, without a single loss making month in its history. Apart from I-Alpha the combined volumes across asset management, prop trading and execution services exceeded 10 percent in some contracts of specific market segments in major Indian exchanges. Investing in innovative initiations like machine learning, the stockbroker firm seeded a startup called Yantri Labs which develops AI methods, algorithms, and systems for financial markets and healthcare. Along with it Estee Advisors has also launched a platform for retail investors named as ‘Gulaq’ which is the foray of the firm into the retail space by providing investment advice and ability to purchase financial products seamlessly. Citing the future expeditions of the company Sandeep quotes “HNIs are now actively looking for quantitative investment products as alternative assets to diversify their risk. The major gap currently is in the advisory space for retail investors. We are trying to fill that up through the launch of Gulaq a platform for retail investors where they get high quality quant based, automated investment advice and the ability to seamlessly invest in financial products such as mutual funds and stocks”.

Sandeep is responsible for setting the firm’s direction sustaining a winning culture and developing profitable investment strategies. Mr. Tyagi is a board member of several companies and an active investor in fields of fintech, AI/ML and healthcare analytics. He is an active member of YPO and a Charter Member of TiE. He has received numerous awards, including 40 under 40 for New Jersey and the Distinguished Alumni Service Award from IIT Delhi.

Offices: Gurgaon and Gandhinagar in India, and Millburn, New Jersey, USA
Offerings: Prop Trading, Asset Management and Execution Services(Broking)