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Alchemy High Growth Select Stock – (PMS)

  • Investment Objective
  • Why Alchemy High Growth Select Stock
  • Terms at a Glance
  • Fund Manager

Investment Objective

The objective is to generate long-term returns by investing in equities and equity related instruments, across all market capitalizations with a mid-cap bias.

Why Alchemy High Growth Select Stock?

  • Reason for investing is that India is one of the fastest growing economies and has sufficient entrepreneurial reserves to exploit the opportunities
  • “Top-Down” and “Bottom-Up” approach to stock picking with focus on superior risk-reward.
  • A usual portfolio comprises of 8-12 stocks across sectors; single stock exposure is capped at maximum 25 percent at cost.

Terms at a Glance

  • CATEGORY - Equity Concentrated
  • TYPE - Open ended
  • BENCHMARK - S&P BSE 500
  • SUGGESTED TIME HORIZON - Minimum 3-5 years
  • FUND STYLE - Multi-cap growth
  • LAUNCH DATE - 20th Dec, 2008
  • MINIMUM INVESTMENT - Rs.3 crores
  • OTHER TERMS

    Philosophy: The philosophy behind growth investing is based on the fact that India is a high growth economy with a strong entrepreneurial culture. Our endeavor is to identify and invest in growth companies through a combination of top-down and bottoms up fundamental research to enable long term wealth creation. A typical Portfolio may generally consist of between 8-12 stocks. We may construct such concentrated Portfolios as per the Clients need and understanding

    Strategy: Invest in companies across the market capitalization range, which have high growth potential and potential to deliver long-term capital appreciation

    Equity

    • Tracking Universe - We have identified a tracking universe of about 180-200 companies based on market capitalisation (above 4000 crores preferably), qualitative governance filters, long term attractiveness and ROE profile of business amongst other parameters.
    • Investible Universe - From this tracking universe, an investible universe of companies is created based on assessment of past and future fundamental variables like revenue and EBIDTA growth, cashflow conversion efficiency and core ROE of the business amongst several other relevant variables which may be unique to a business. In addition to objective fundamental parameters and assessment of qualitative management capabilities, governance standards and competitive ability of the business is also carried out. A comprehensive valuation exercise is also carried out based on one and/or combination of valuation parameters like P/E, P/B. EV/EBIDTA, DCF etc to arrive at an acceptable valuation range for investing in the security.
    • Portfolio Construction - The Portfolio manager managing the strategy is then free to construct the Clients Portfolio from within the investible universe at his discretion.

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

    S&P BSE 500 index serves as a comprehensive representation of the Indian economy, covering all 20 major sectors in the country. The index comprises of the top 500 companies listed on the Bombay Stock Exchange, with selection based on a combination of average float-adjusted market capitalization, average value traded, and average total market capitalization. Hence, we believe S&P BSE 500 is considered to be appropriate benchmark which would reflect the realistic comparison with the Portfolio performance.

    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 – Hiren Ved

Mr. Hiren Ved is the Co-founder, Director, CEO and CIO at Alchemy Capital Management. He started his equity market career in 1991 and worked on both sell side and buy side research roles for the first nine years of his career, before joining Alchemy to spearhead the firms Asset management business in the year 2000. Hiren has deep knowledge across sectors and is known for his bottom up research and stock picking skills. He has built a long-term track record of generating significant alpha over the last 19 years. Managing / advising funds worth 1 billion USD (as on 30 Sep 2021) across domestic and offshore mandates for Alchemy.