Alchemy Ascent – (PMS)

  • Investment Objective
  • Why Alchemy Ascent ?
  • Terms at a Glance
  • Fund Manager

Investment Objective

To generate long term risk adjusted returns.

Why Alchemy Ascent?

  • All fundamentals objectively stated and backed by data.
  • Treating markets as evolutionary, not destined. So, no subjectivity and no predictions.
  • Defined selling rules.
  • Respecting reflexivity in markets.
  • Justice to the Portfolio above justice to the concept.

Investment Philosophy and Parameters:

Growth:

  • Growth which is significantly more than the cost of capital
  • Consistent & Continuous growth
  • Growth adjusted for different fundamental parameters
  • Negative marking if there is high divergence or deterioration in growth

Valuations:

  • Value calculated as Price to Earning and/or Price to Cash Flow
  • Valuations is adjusted to the quality of firm
  • Valuation is also adjusted to the growth of the firm

Quality & Risk Management:

  • Rejection is more important than selection
  • Strict negative marks for bad balance sheet items, but no positive marks for the same as it is mandated and expected of an investment candidate
  • This also helps us filter out companies which are not managed properly OR which eventually turn out to be CAGR KILLERS

Market Cycle:

  • Presence /Absence of a rewarding market cycle
  • Stock which is appreciated by markets also increases our probability of success
  • Past behaviour of drawdown and volatility of a stock / company

Terms at a Glance

  • CATEGORY - Listed Equities
  • TYPE - Open ended
  • BENCHMARK - S&P BSE 200
  • SUGGESTED TIME HORIZON - 3 to 5 years
  • FUND STYLE - Multi-cap growth
  • LAUNCH DATE - 03rd September, 2019
  • MINIMUM INVESTMENT - Rs 50 lakh
  • OTHER TERMS

    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 product/investment approach, to identify companies based on various parameters such as growth, valuation, quality earning and balance sheet health.

    Equity

    Equity stocks are chosen for investment on the basis of 3 factors:

    • The company fundamentals, as reflected in reported numbers
    • Investment strategy research regarding various market cycles
    • Risk & Reward ratios

    Cash or cash equivalents are chosen when an appropriate equity opportunity is not available

    Upto 100% in equity (cash portion may be deployed in liquid funds/ debt Securities).

    Portfolio Construct: Average of 25-30 stocks
    (Additional investments would be managed as a separate Portfolio)

    Since our investible universe is an average market capitalization of Rs. 4000 crore and above and since the last stock in BSE 200 also tends to hover around a market cap of approximately Rs. 4000 crore, we have chosen the S&P BSE 200 index as our benchmark.

    High Risk

    • General risk
      Please refer “Risk Factors” given in clause 6 of the Disclosure Document
    • Specific risk
      The Portfolio Manager doesn’t envisage any specific risks in addition to General Risk factors

    NA

 

Fund Manager - Vikas Kumar

Mr. Vikas Kumar has over 21 years of expansive equity market experience that includes equity analysis, private client fund management and investment strategy building. He specializes in creating data-based quantitative algorithms & mathematically objective implementation strategies. His unique research paper on investment methodology, ‘A Quantitative System for Reflexive Financial Markets’, earned him a U.S. copyright. He holds a Post-Graduate Degree in AI-ML (Artificial Intelligence & Machine Learning) & a B.Com from Mumbai University. He also pursued a BA Math from Delhi University, qualified for Indian Institute of Technology Joint Entrance Examination (IIT-JEE), was a state-level National Talent Search Examination (NTSE) merit scholar and one of the national CBSE toppers. Prior to Alchemy, he worked with Dalal & Broacha Stock Broking and collaborated at Reliance Capital. He was also nominated as one of the best Quant Analysts in Asia by Institutional Investor magazine in 2009.