Name: Alchemy High Growth – (PMS)
Brand: Alchemy Capital
Rating: 5 (4 reviews)

Alchemy High Growth – (PMS)

Investment Objective
Why Alchemy High Growth?
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?

India is one of the fastest growing economies with an entrepreneurial pool to exploit opportunities.
“Top-Down” and “Bottom-Up” approach to stock picking with focus on superior risk-reward.
The High Growth strategy has outperformed its benchmark in 15 of the total 20 calendar years since 2002
Has created consistent wealth for investors. An initial investment of Rs.1 crore in 2002 has grown to Rs. 45.2 crores as on 31 Dec 2021.
A typical portfolio consists maximum of 25 stocks; a minimum of 25% exposure in large-caps, less than 20% in small-cap, and the balance for mid-cap, giving enough flexibility to position the portfolio based on external opportunities and maintaining fair risk-reward.

Terms at a Glance

CATEGORY - Equity Diversified
TYPE - Open ended
BENCHMARK - S&P BSE 500
SUGGESTED TIME HORIZON - 3 – 5 years
FUND STYLE - Multi-cap growth
LAUNCH DATE - 8th May, 2002
MINIMUM INVESTMENT - Rs.50 lakhs

OTHER TERMS

Alchemy Investment Philosophy is “Growth at Reasonable Price”. The philosophy behind growth investing is based on the fact that India is a high growth economy with a strong entrepreneurial culture. Our endeavour 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.

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). The Portfolio allocation across market caps is also given below.

Portfolio Construct: A typical Portfolio may generally consist maximum of 25 stocks. Indicative Portfolio construct could be as follows:

Market capitalization*	Portfolio construct
Large cap stocks	25 – 100%
Mid cap stocks	0 – 75%
Small caps	0 – 20%

*Market capitalization

Large cap stocks	Market capitalization of 100th stock is the cut off for large cap
Mid cap stocks	Market capitalization between 101st to 400th stock is the cut off for Mid cap
Small cap stocks	Market capitalization below 400th

Note: Market capitalization cut off will be taken from S&P BSE 500 as on 31st Dec (i.e. end of every calendar year) for succeeding calendar year.

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 the 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

Fund Manager – Amit Nadekar

A Chartered Accountant by profession, Mr. Nadekar has worked across equity research, corporate strategy, taxation and audit over the last one and a half decades. He started his career on the sell side, tracking the US banking & financial sector; later moving on to the corporate side as a part of the Corporate Strategy team at Raymond. He has been a part of the Alchemy investment team since 2005.

For complete details of the product, please Contact Us.

Alchemy Ascent

objective method investing

Our latest product, Alchemy ASCENT endeavors to provide a consistent "high alpha" investment strategy which build portfolios to deliver consistent outperformance over the long term, using an objective, back tested and data driven approach devoid of any biases.

RESULT ORIENTED
+
UNBIASED
+
DISCIPLINED
+
CONSISTENT
+
DATA DRIVEN
=
ASCENT PORTFOLIO

1Unbiased approach towards each stock
2Greed/Fear/Hope are mitigated by having objective method for investment
3Focus on Discipline & Data to generate CAGR
4Back Tested for more than 21 years across many market cycles
5Ability to scan over 2000 stocks daily to find a winner
6Endeavor to generate returns outperforming the relevant index over 3-5 Year
7Churn ratio of ~ 0.67
8Average cash level is ~ 10%
9Focused unbiased active portfolio management

Minimum Investment of INR 50 lakhs

Notes: Alchemy Capital Management Pvt Ltd (Alchemy Capital) is registered as a Portfolio manager with SEBI. Alchemy Ascent is the product of Alchemy Capital's Portfolio Management Services.

Disclaimers:

General Risk factors

All investment products attract various kinds of risks. Please read the relevant Disclosure Document/ Investment Agreement carefully before investing.

General Disclaimers

The information and opinions contained in this report/ presentation have been obtained from sources believed to be reliable, but no representation or warranty, express or implied, is made that such information is accurate or complete.
Information and opinions contained in the report/ presentation are disseminated for the information of authorized recipients only and are not to be relied upon as advisory or to be taken in substitution for the exercise of due diligence and judgement by any recipient.
The information and opinions are not, and should not be construed as, an offer or solicitation to buy or sell any securities or make any investments.
Nothing contained here in, including past performance/ back testing results, shall constitute any representation or warranty as to future performance.
The client is solely responsible for consulting his/her/its own independent advisors as to legal, tax, accounting and related matters concerning investments and nothing in this document or in any communication shall constitutes such advice.
The client is expected to understand the risk factors associated with investment & act on the information solely on his/her/its own risk. As a condition for providing this information, the client agrees that Alchemy Capital Management Pvt. Ltd., its Group or affiliates makes no representation and shall have no liability in any way arising to them or any other entity for any loss or damage, direct or indirect, arising from the use of this information.

This document and its contents are proprietary information of Alchemy Capital Management Pvt. Ltd and may not be reproduced or otherwise disseminated in whole or in part without the written consent.

Alchemy High Growth- PMS