ALCHEMY Ascent

• 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.

• 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.

• 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.

• 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

• 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.

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.

25-30 stocks on average (Additional investments would be managed as a separate Portfolio).

The below performance table is according to several portfolio holdings (as of 31st Jan 2020).

Below is table for fund performance.

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.