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).

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.