The investment strategy of Magnum Hybrid Long Short Fund follows a multi-layered approach combining equity, fixed income, and derivatives to navigate different market cycles. The fund primarily maintains a large-cap oriented equity portfolio for liquidity and efficient execution, while actively using derivatives such as covered calls, protective puts, collar strategies, and arbitrage opportunities to generate income and manage downside risk. Fixed income allocation is focused on accrual-oriented instruments to provide stability and consistent income generation. The strategy aims to optimize risk-adjusted returns by dynamically balancing gross equity exposure with hedged positions, keeping net equity exposure relatively low, thereby reducing volatility while still participating in equity market growth. This structured approach allows the fund to seek income generation in sideways markets, protect capital during downturns, and capture opportunities during favorable market conditions.