About Company
Alchemy Capital Management is one of the leading providers of bespoke Portfolio Management Services in India. Established in 1999, the SEBI-Registered firm. Alchemy caters to high-net-worth individuals, family offices and institutions. Managing and advising an AUM worth over USD 931 million, the firm serves a client base of 1850+ families as of June 30, 2023.
Pioneers in bottom-up stock picking approach, Alchemy places a strong emphasis on thorough research and long-term investments. Guided by a disciplined investment approach, the company aims to deliver sustainable returns. With a legacy of over 20 years, Alchemy has built a reputation for trust, integrity, and expertise. Its stable and experienced team of investment professionals possesses deep industry knowledge, enabling the firm to navigate market cycles and trends successfully.
Fund Snapshot
| Year of Inception | 3rd Sept 2019 |
| Number of Stocks | 25-30 |
| Investment Horizon | Long Term |
| Fund Managers | Mr. Hiren Ved |
Why is Alchemy Ascent important?
- All fundamentals are stated objectively and supported by data.
- Respecting markets as evolutionary rather than predetermined. So there is no subjectivity and no prediction.
- Selling guidelines have been established.
- Market reflexivity must be respected.
- Justice for the Portfolio comes before justice for the concept.
Unique Feature:
- Every fundamental is stated objectively and supported by evidence.
- Treating markets as evolving rather than predetermined. So there is no subjectivity nor prediction.
- Outlined selling guidelines
- Recognizing market reflexivity
- Justice to the concept comes second to justice to the Portfolio.
Growth:
- Growth greatly exceeds the cost of capital.
- The growth that is constant and ongoing
- Many basic factors modify growth
- Negative marking if growth diverges much or worsens
Valuations:
- Price to Earning or Price to Cash Flow is how value is determined.
- Valuations are adjusted for firm quality
- The valuation is also modified to reflect the firm’s expansion.
Quality & Risk Management:
- Selection is less significant than rejection.
- Strictly negative ratings are given for poor items on the balance sheet, but positive marks are not given as this is required and anticipated by an investment applicant.
- Additionally, it enables us to eliminate improperly managed businesses that ultimately prove to be CAGR KILLERS.
Market Cycle:
- Whether there is or is not a profitable market cycle
- The chances of success grow when the markets value a stock.
- The previous performance of a stock’s downturn and volatility
Object-oriented method investing:
- Each stock is approached objectively.
- Having an objective method for investing reduces greed/fear/hope.
- To generate CAGR, focus on discipline and data.
- Back Tested for over 21 years across multiple market cycles.
- The ability to scan over 2000 stocks daily in search of a winner.
- Attempt to outperform the relevant index over the next 3-5 years.
- The churn ratio is 0.67.
- The typical cash level is 10%.
- Active portfolio management that is focused and unbiased.
Selection of security type:
Three factors influence the selection of equity stocks for investment:
- The fundamentals of the company, as reflected in reported numbers.
- Research into investment strategies for various market cycles.
- Risk-to-reward ratios.
Portfolio Design:
25-30 stocks on average (Additional investments would be managed as a separate Portfolio).
Fund Performance:
The below performance table is according to several portfolio holdings (as of 31st Jan 2020).
| Aavas Financiers | 9.5% |
| Bajaj Finance | 7.4% |
| Ratnamani Metals & Tubes | 6.2% |
| Rites | 4.4% |
| Metropolis Healthcare | 4.4% |
| Larsen & Toubro Infotech | 4.1% |
| Indiamart Intermesh | 3.9% |
| Gujarat State Petronet | 3.5% |
| Manappuram Finance | 3.3% |
| Indraprastha Gas | 3.1% |
Below is table for fund performance.
| Period | First Month | Third Month | Since Inception |
| Fund Returns (%) | 4.0 | 6.0 | 10.0 |
| Benchmark S&P BSE 200 | -0.7 | 1.2 | 11.6 |
Benchmark selection:
Because our investible universe has an average market capitalization of Rs. 4000 crore and above, and the last stock in the BSE 200 index also has a market capitalization of around Rs. 4000 crores, we have picked the S&P BSE 200 index as our benchmark.
Preamble –
In today’s financial world, it is considered that identifying the & quota right stock & right theme sector, cycle & quota is the key to any successful investment plan. Even the most seasoned investors are susceptible to biases inherent in the investment process. As a result, alpha generation is uneven.
• However, we feel that developing a high–performance portfolio entails far more. Stock allocation, relative ranking in the portfolio, timing, as well as risk management, are all critical components of the alpha creation process. We believe in a robust data the driven research process that takes into account all sources of alpha creation completely, which aids in the development of an unbiased and disciplined investing methodology – a key to successful and consistent investment outcomes.
Alchemy Ascent –
strives to create a constant & quota; high alpha & quota; investment strategy that builds a portfolio to generate consistent outperformance over the long term, utilizing an objective, back-tested, and data-driven methodology free of biases.
Investment Objective, Philosophy & Strategy
Investment objective:
To generate long term risk adjusted returns.
Philosophy & Strategy:
A High Risk High Return oriented strategy where capital allocation is as important as stock selection and which aims at generating long term return by investing in companies with Market Capitalisation of 4000 crores and above, using data intensive research driven investment approach, to identify companies based on various parameters such as growth, valuation, quality earning and balance sheet health.
About Fund Manager
Mr. Hiren Ved -Co-Founder and Whole-Time Director
Hiren Ved, an equity market veteran, serves as the Whole-Time Director and CIO at Alchemy Capital Management where he has been leading the firm’s Asset Management business. With over 30 years of experience in the Indian equities market, Hiren has developed a sustainable long-term investment philosophy based on fundamental research. He is known for his deep sector knowledge, bottom-up research skills and stock picking abilities. Hiren manages and advises funds over USD 931 million (as on June 30, 2023) across domestic PMS and offshore institutional mandates for Alchemy Capital. He holds a graduate degree in Accounting from Mumbai University and a post-graduation in Management & Cost Accounting from The Institute of Cost Accountants of India.
INVESTMENT PROCESS
Stock Selection:
- Market Capitalization Cut-off: INR 4,000
Crores - Investible stocks have to pass a stringent system of eliminating value destroying factors & are sometimes vetoed based on risk and fundamental forensic analysis
- Over 50 Quantified fundamental parameters and their combinations used for screening of investible universe
- Highest Ranked Stocks based on points filtered
Capital Allocation :
- Portfolio on an average holds 25 stocks-30 stocks
- Weight per stock may range from 3% to 6% @cost, exceptional stocks may get an allocation of 10% @cost
- Ranking system optimizes stock to be held in the portfolio and creates
allocation for the same
Risk Management:
- Prohibitive Risk
• Quality Filters
• Negative Marking for Unfavorable factors
such as Balance Sheet ratios - Participative Risk / Exit Strategy
• Daily change in Rank / Score of Individual
Stock (Using Fundamental Data)
• Draw-Down / CAGR nonperformer
• Multiple rules based on above scenarios - Operational risk minimized using automation of
processes
FAQ
What is the inception date of the ALCHEMY Ascent Growth Fund?
8 Sept 2019
What is the mission & vision of Alchemy AMC?
Alchemy’s institutional heritage is founded on honesty, procedure, intellect, and an unwavering commitment to providing excellent customer service at all times. Alchemy’s experience, intelligence networks, and ongoing input from trade and business analysts have directed the primary investment management team in applying only best-in-class practices to fulfil clients’ expectations and often experiment with new ideas.
What is the portfolio strategy of ALCHEMY Ascent Fund?
A high-risk, high-return strategy in which capital allocation is as important as stock selection, with the goal of generating long-term returns by investing in companies with a market capitalisation of 4000 crores or more, using a data-intensive, research-driven investment approach to identify companies based on various parameters such as growth, valuation, quality earnings, and balance sheet health.
| Product - AMC | Category | AUM (in Cr.) | Performance | 1M | 3M | 6M | 1Y | 2Y | 3Y | 5Y | 10Y | SI |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Alchemy High Growth AMC Name: Alchemy Capital Management Pvt ltd Inc Date: May 08,2002 |
Multi Cap (PMS) |
871 | Strategy | -3.1 | -0.9 | 14.1 | 7.0 | 2.1 | 17.4 | 7.2 | 12.8 | 19.6 |
| S&P BSE 500 | -2.9 | -1.4 | 10.9 | 9.6 | 6.7 | 22.0 | 15.3 | 14.7 | 16.7 | |||
|
Alchemy High Growth Select Stock AMC Name: Alchemy Capital Management Pvt ltd Inc Date: Dec 19,2008 |
Multi Cap (PMS) |
3,338 | Strategy | -1.3 | 1.3 | 17.1 | 11.7 | 5.0 | 25.2 | 13.1 | 18.2 | 19.4 |
| S&P BSE 500 | -2.9 | -1.4 | 10.9 | 9.6 | 6.7 | 22.0 | 15.3 | 14.7 | 15.7 | |||
|
Alchemy Ascent AMC Name: Alchemy Capital Management Pvt ltd Inc Date: Sept 03,2019 |
Multi Cap (PMS) |
401 | Strategy | -6.0 | -0.4 | 21.4 | 16.1 | 5.2 | 27.7 | NA | NA | 16.6 |
| BSE 200 | 2.1 | -2.9 | -1.4 | 10.9 | 9.6 | 6.7 | 22.0 | NA | NA | |||
|
Alchemy Alpha 100 AMC Name: Alchemy Capital Management Pvt ltd Inc Date: Aug 16,2023 |
Large Cap (PMS) |
NA | Strategy | -1.80 | NA | NA | NA | NA | NA | NA | NA | 0.60 |
| Nifty 50 TRI | -2.70 | NA | NA | NA | NA | NA | NA | NA | -1.80 | |||
|
Alchemy Smart Alpha 250 AMC Name: Alchemy Capital Management Pvt ltd Inc Date: Aug 10,2023 |
Multi Cap (PMS) |
NA | Strategy | -3.20 | NA | NA | NA | NA | NA | NA | NA | 1.00 |
| S&P BSE 500 TRI | -2.90 | NA | NA | NA | NA | NA | NA | NA | -0.80 | |||
|
Alchemy Leaders of Tomorrow AMC Name: Alchemy Capital Management Pvt Ltd. Inc Date: Jan-18 |
long only (AIF) |
413 | Strategy | 4.0 | 20.7 | 25.9 | 13.8 | 15.0 | 29.2 | NA | NA | 12.5 |
| S&P BSE 500 | 3.8 | 11.8 | 13.8 | 15.9 | 11.6 | 23.6 | NA | NA | 11.3 |
For any queries, contact us on Mobile: +91 988 115 6123, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected] 
Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.