Alchemy PMS
PMSIME's View on Alchemy PMS
AMC View
Alchemy, backed by strong founders and a seasoned CIO, has shown meaningful performance recovery across strategies. The firm’s consistent investment approach and ability to identify quality businesses are translating again into improved outcomes. With performance momentum returning and its core philosophy intact, Alchemy now merits a higher conviction and a 4-star rating
AMC Pedigree
Alchemy is a leading broking and PMS provider in India with a highly experienced founding team. However, a SEBI verdict (in Mar-23) against one of their founders in an insider trading case is a cause for concern, although he is not directly involved in the PMS operations.
Team Pedigree
Alchemy has a strong investment team led by co-founder and CIO Hiren Ved, who brings stability, experience, and respect to the firm.
Investment Philosophy
Alchemy excels in bottom-up stock picking but lacks a clearly defined investment philosophy, allowing flexibility in shifting between investment themes but making it challenging to understand the investment strategy.
AMC Background
Alchemy was founded by Lashit Sanghvi, Hiren Ved, Rakesh Jhunjhunwala and Ashwin Kedia in 1999 (a team with a collective experience of over 100 years in Indian equities). The strategies are actively run by Hiren Ved, while Rakesh Jhunjhunwala & Ashwin Kedia are not actively involved in the business. Alchemy is known to be amongst the best bottom-up stock pickers in the market, and have grown to become one of the largest PMS houses in the country (ranked #4). Having Hiren Ved (known for strong bottom-up stock selections), the co-founder, continue to serve as the CIO and primary fund manager provides the much required stability to the investment team (a critical aspect for the growth of any investment business). High Quality AMC Alchemy AMC is one of the oldest PMS providers in India, and has a strong track record of longer-term outperformance. Hiren Ved, one of the co-founders of AMC, has been spearheading the investment team from the founding of the PMS, and is a highly respected investment professional.Investment Philosophy
Alchemy relies more on a strong investment process to identify attractive bottom-up investment opportunities than a clearly defined investment philosophy. Alchemy Investment Process is driven by the '3 I-Matrix'- Idea Generation: Track larger investment universe of 500 companies with detailed understanding of 100-150 companies. Along with actively tracking the larger universe, idea generations happens through network inputs (independent company/sector feedback, interacting with peer group, and from sector conference).
- Investment Process: Investment process managed by the CIO with veto power at various stages of the research process. Continuous monitoring and periodic reviews of the position on a quarterly basis.
- Intervention: Intervention based on CIO's veto power in portfolio construction, and exit strategy.
Investment team
Hiren Ved | 5-star rated FM
CIO | 35 yrs Experience | 27 yrs at current firm
Past Experience: Prime Securities (Head - Equities), KR Choksey (Head of Research)
Hiren is a very seasoned investment professional, with close to 3 decades of investment experience. He co-founded Alchemy Capital Mgmt in 1999, helping build it into one of the leading PMS's in the country, on the back of long-term stability in the investment management team and strong alpha generation over time.
