CARNELIAN ASSET ADVISORS

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About Company

An investment management firm was established by Vikas Khemani, Manoj Bahety, Sachin Jain, and Swati Khemani to pursue their interest in investing in the capital markets. Carnelian aims to assist clients in generating and preserving their assets in the most efficient way possible by investing in equities. Carnelian strives to establish a global asset management platform that is recognised for its ethics and knowledge.In the Carnelian realm, they feel that investing success results from making sound judgments over an extended period. Good decisions are those that are made “Objectively, free of any prejudice” and take into account “Probability of outcome” as well as “Risk reward.  (*Carnelian is a semi-valuable stone which represents inspiration, perseverance, authority and fortitude; it is accepted to achieve flourishing and shield from negative energies)

Fund Snapshot

Year of Inception 16, Mar 2020
Number of Stocks 15 – 25
Investment Horizon Carnelian Compounder Strategy is a long-term, multi-cap strategy that seeks to generate sustainable alpha and compound capital over time through the MCO framework. The investment offers an unconventional blend of Magic (accelerated growth) with stable or growing companies who are also actively engaged in opportunistic funds management practices
Fund Managers Vikas Khemani

Vikas Khemani, Manoj Bahety, Sachin Jain, and Swati Khemani established Carnelian Asset Management as an investment management business to pursue their interest in capital markets. The objective of Carnelian is to assist clients in creating and safeguarding their wealth by investing in equities. Carnelian strives to establish a worldwide scale asset management platform recognised for its knowledge and driven by its strong beliefs.

Shortly, CARNELIAN ASSET advisors provide Wealth Management, Portfolio management and Credit relating services to its clients. 

They provide financial services for both businesses and individuals. They work with insurance brokers, financial advisors, bankers and many more to provide clients with the right advice on their protection needs.

Investment Philosophy

  • Carnelian Asset believes that investing in success is the result of making sound judgments over time. Decisions that are made “Objectively, Free of any prejudice” should be made based on the “Probability of result” and the “Risk reward.
  • They think investing in excellent development firms managed by exceptional management at a reasonable price is a good idea.
  • They’ve developed a proprietary quantitative and qualitative method to eliminate possibilities.
  • They think that the margin of safety is not only found in price but also in thorough research.
  • They think that one can never make money on borrowed convictions.
  • they’re glad to be a contrarian when the risk-reward profile is favourable: regressing to mean mimicry.
  • They believe in taking things slow and long-term. Investing is similar to watching grass grow. 
  • They prefer assured results to immediate returns.
  • They don’t mind sitting on cash as long as they can’t find a better purpose for it.

Unique Feature

Before spending money, they go through the unique forensic framework to explore the following: “CLEAR.”

C – Cashflow evaluation & Capital Allocation. No damns are given about earnings that aren’t linked to a cash flow conversion. Instead of relying on the amount of money coming in, they dig into the source of cash flow.

L – Underwriting Analysis, actual vs reported debt, contingent liability and likely future earnings implications

E – Analysis of Actual vs Expected Earnings, True Economic Profit vs Reported Profit, Discretionary vs non-discretionary profit

A – Asset Quality Analysis, Some worrisome points – huge built up in loans and advances, a large quantum of long duration inventories/receivables susceptible to value diminution, large payables are supporting large receivables/inventory, profits getting re-deployed in non-core/expensive/uncertain inorganic growth, profits getting into intangible assets/goodwill – without visibility of commensurate profitability, subsidiaries/JVs which require a constant infusion of profit without any visibility of returns. 

R – Governance concerns of another company and related party transactions.

Carnelian Asset Management is an investment company that focuses on real estate and marketing as well.

About Fund Managers

Vikas Khemani:CEO of Edelweiss Securities Ltd
Vikas Khemani- Fund Manager-CARNELIAN ASSET ADVISORS

 

Vikas Khemani,23 years of capital markets experience, most recently as the CEO of Edelweiss Securities Ltd, where he spent 17 years incubating & building several businesses to leadership position including Institutional Equities and Equity Research.

Manoj Bahety: Fund Manager ,Carnelian Asset Advisors LLP 

Manoj has over 20 years of broad and diversified financial services expertise with notable firms such as Edelweiss Securities, Morgan Stanley, RIL, and HPCL. He most recently worked as Dy. at Edelweiss Securities for 11 years. Head of Institutional Equity Research, as well as Head of Forensic, Thematic, and Mid Cap Research He is well-known for his distinct, non-consensus research and for pioneering forensic research, often known as “Analysis Beyond Consensus” (ABC research). ABC has assisted investors worldwide in making educated investment decisions based on genuine numbers rather than reported numbers, so avoiding traps (one of Carnelian’s qualities). Under his direction, mid-cap research has produced numerous multi-baggers, including VIP Industries, Supreme Industries, Balkrishna Industries, PI Industries, AIA Engineering, ICRA, Fag Bearing, SKF, and Gulf Oil. Manoj has served in a number of committees of the CFA Institute is the Chairperson of the India Advocacy Committee and a member of the global CDPC committee located in the United States. Manoj is a fitness fanatic who has been running marathons for the past eight years

Investment Strategy

The Carnelian Compounder Strategy is a multi-strategy mutual fund that uses its own MCO framework to achieve superior performance across market cycles. They in the Carnelian realm believe that investing success is attributable to making excellent judgments over an extended period. Good decisions are made “Objectively, Free of any bias”, taking into account “Probability of occurrence” and “Risk reward.”The Carnelian Compounder Strategy is a multi-cap, long-only sector agnostic strategy that aims to produce semi-permanent alpha and compound capital over a long period through the MCO framework. The Strategy is a unique and unusual mix of Magic (accelerated growth), Compounder (steady growth) & Opportunistic firms.An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that gathers money from knowledgeable investors to invest with a particular strategy to meet specific goals.The Carnelian Capital Compounder Fund is a category III AIF that provides long-term alpha and capital growth. The minimum investment amount according to SEBI rules is INR 1 crore.

FAQS

What is the investment philosophy? What are your returns objective, risk management framework and time horizon for realisation of exit? How does fund compounding work & what are its stages?

The Carnelian Compounder Fund aims to provide long-term alpha and capital growth. This means that they do not have a fixed annualised return target. Their risk management framework is designed to preserve capital during periods of market stress, and they have a realisation horizon of five years. Fund compounding will work through three stages:

– The first stage (accumulation) focuses on capital preservation and generating consistent positive returns;

– The second stage (expansion) looks to achieve accelerated growth through a combination of magic and compounders;

– The third stage (maturity) looks to provide steady returns by investing in opportunistic firms.

What are the key investment themes?

They invest in companies with high quality businesses that have the potential to generate above-average returns over time. Their focus is on real estate, marketing and investment companies.

What are the key risks you face as an investor?

The Carnelian realm faces a number of real and potential threats:

– Risk of failing to meet performance expectations;

– Risk that they do not achieve our strategy goals;

– Investment risk which is related to downside losses due to adverse movements

Book a call with our experts

For any queries, contact us on Mobile: +91 95616 10108, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected]     Whatsapp-logo

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.