When Nandita Agarwal Parker started her India hedge fund a decade ago, all investors in the U.S. wanted to talk about were her children and her husband.

“When I went to fund raise in 2004, a fund-of-funds guy told me ‘honey, what you need is a sugar daddy,’” Parker, 49, said in an interview at her colonial-style bungalow, which doubles as the office of Karma Capital Management LLC, on the outskirts of New Delhi. “Rather than discussing strategy, investors would question the ages of my children.”

Parker beat the odds to now run the best-performing India-focused hedge fund over 10 years with investors mainly from the U.S. She plans to boost assets in her two funds, including the top ranking $70 million Karma STAR, sevenfold to $500 million in the next three years, betting on a “multiyear” bull run in the nation’s equities, spurred by hopes of economic revival under Prime Minister Narendra Modi.

Karma STAR, which bets on falling and rising stock prices, has had an annualized return of 15.58 percent over the past decade as of September, according to Eurekahedge Pte. Hedge funds investing in India have returned 29 percent this year, according to the Singapore-based data provider.

“Success like those of Parker will encourage more women to go into the field,” New York-based Susan Stautberg, who co-founded Women Corporate Directors, a global organization that pitches for and mentors women for top corporate management and board roles, said in an e-mail. “It may take a while for men to invest if they run the funds. So Parker’s success is a step towards progress.”

Progress is already under way in India where women head two of the biggest banks: Arundhati Bhattacharya as chairman of the State Bank of India (SBIN), the country’s largest lender, andChanda Kochhar, chief executive officer of ICICI Bank Ltd., the largest private lender by assets.

David Fuller's view

Financial markets often have a tedious macho image but there is no reason why women should not be just as good at analysis and managing money.  In fact, they can often do better, having fewer ego problems. 

I had not heard of Karma STAR or Nandita Agarwal Parker before reading this article today.  Also, I am unable to access the data on this fund without filling out various forms.  Eoin mentioned that this is part of the new Dodd Frank legislation in the USA and that someone must be an ‘accredited investor’ ($1 million in liquid assets) before a hedge fund can talk to them or release information.  Nevertheless, Nandita Agarwal Parker’s approach sounds sensible and the performance is competitive.  More importantly, India has every chance of remaining one of the strongest stock markets over the next decade, assuming Narendra Modi remains prime minister throughout that period.