Alchemy High Growth
Alchemy PMS | Equity | | PMSIME's View on Alchemy High Growth
Strategy
GARP Approach
Investment Fund
Alchemy has all the ingredients of a quality PMS provider. However, the performance of Alchemy High Growth has been particularly weak (relative to peers, benchmarks, and even other Alchemy schemes). We would wait for the performance to improve before recommending investments in this scheme. Initial signs of this recovery are evident since CY23-24.
Fund's Strategy View
The Strategy follows a GARP (Growth at a Reasonable Price) approach, leveraging the belief in India's high-growth economy and robust entrepreneurial culture. With a focused portfolio of up to 25 stocks selected from the top 500 companies, it maintains a 3-5 years investment horizon. It aims at a Multi-cap strategy that follows a 'top-down' and 'bottom-up' stock-picking approach. The strategy is relatively flexible in terms of definition, allowing the fund manager to shift between investment styles & market capitalizations based on the best opportunities in the market at a specific point in time.
Fund Performance
The fund has underperformed peers & is amongst the worst performing schemes in this category in the last 5 year trailing returns. In terms of longer-term annual performance, performance has been consistent, with the fund having outperformed it's benchmark in over 60% of annual calendar years.
IME's View on Alchemy PMS
View on AMC
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's 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.
AMC Team
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.
Alchemy High Growth- Investment Strategy
Following concentrated exposure to generate long term returns by investing in all market caps
Alchemy High Growth is a multi-cap strategy that follows a ‘top-down’ and ‘bottom-up’ stock-picking approach. The portfolio will be managed under the following investment criteria – 20 to 25 stocks – Min of 25% in large-caps, Max of 20% in small-caps, balance in Mid-caps – While there is a bias towards mid-caps, the portfolio has the flexibility to position the portfolio based on external opportunities.
Investment Process
The investment process is driven by a 3 I matrix:
- Idea Generation: Track a larger investment universe. With actively tracking the larger universe, idea generation 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.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Alchemy High Growth | -11.5 | 13.6 | 16.3 | 20.1 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 16.8 |
| Alpha over Broad Mkt BM | -4.9 | -1.1 | -2.9 | 3.3 |
Performance as of: 30-Sep-25 | Inception Date: 08-May-02 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
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.
