Alchemy Leaders – (PMS)

  • Investment Objective
  • Why Alchemy Leaders
  • Terms at a Glance
  • Fund Manager

Investment Objective

The objective is to generate long-term returns by investing in large-cap equities

Why Alchemy Leaders?

  • Invests in companies with market capitalization exceeding Rs.5000 crores, thus streamlined focus on large cap and larger mid-cap companies
  • Relatively focus on well-established business models as companies have reached scalability and are proven leaders in their segments
  • ‘Top-Down’ and ‘Bottom-Up’ approach to stock picking with focus on superior risk-reward

Terms at a Glance

  • CATEGORY - Equity Diversified
  • TYPE - Open ended
  • BENCHMARK - Nifty 50
  • SUGGESTED TIME HORIZON - 3 – 5 years
  • INVESTMENT STYLE - Large-cap growth
  • LAUNCH DATE - 21st Dec 2006
  • MINIMUM INVESTMENT - Rs 50 lakh
  • OTHER TERMS

    The philosophy behind this strategy is to invest in growth companies, which have achieved scale and have reached or have potential to be amongst the leaders in their field/industry segments. Typically, these companies would have experience of operating through good-bad business cycles. Our extensive top-down and bottom-up approach helps build a Portfolio of high conviction ideas to deliver steady returns.

    Equity

    • Tracking Universe - Tracking universe primarily comprises of companies which are classified as large cap by market capitalisation, the definition of which is reset every calendar year end and is equivalent to market cap of 100th stock in BSE500
    • 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 of between 12-15 stocks. Indicative Portfolio construct could be as follows:

    Market capitalization* Portfolio construct
    Large cap stocks 85 – 100%
    Mid cap stocks 0 – 15%
    Small caps Nil

    *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

    Nifty 50 index is a broad based stock market index for the Indian equity market and tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian securities. It represents the weighted average of 50 Indian company stocks in almost 17 sectors. Hence, we believe Nifty 50 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

    NA

 

Fund Manager – Vikas Kumar

With over 19 years of equity market experience, Mr. Vikas Kumar has expansive experience that includes equity analysis, private client fund management and strategy building on a sell-side institutional desk. 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 pursued a BA in 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.