Alchemy High Growth Select Stock
Alchemy PMS | Equity | | PMSIME's View on Alchemy High Growth Select Stock
Strategy
Dynamic Allocation
Investment Fund
Alchemy High Growth Select Stock, led by its experienced co-founder and CIO, has shown clear signs of performance recovery since CY23. While it had lagged some of our other top-rated flexi-cap strategies previously, the combination of strong pedigree, disciplined execution, and improving outcomes supports a change in stance. We now rate Alchemy High Growth Select Stock as highly recommended.
Fund's Strategy View
The strategy 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. But it lacks a clearly defined investment style. The naming is also a bit unclear, while 'Select Stock' hints at a concentrated strategy, the actual portfolio is highly diversified.
Fund Performance
The fund has outperformed peers 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.
AMC Background
Alchemy was founded in 1999 by Lashit Sanghvi, Hiren Ved, Rakesh Jhunjhunwala, and Ashwin Kedia, a group with over 100 years of collective experience in Indian equities. The investment strategies are actively managed by Hiren Ved, who continues to serve as CIO and primary fund manager, while Rakesh Jhunjhunwala and Ashwin Kedia are not involved in day-to-day operations. Alchemy is regarded as one of the strongest bottom-up stock-picking PMS houses in India and has scaled to become one of the largest PMS platforms in the country (ranked among the top four). The continued leadership of Hiren Ved provides long-term stability to the investment team, a critical factor in sustaining performance and organisational growth.
Investment Philosophy
Alchemy relies more on a disciplined and repeatable investment process to identify attractive bottom-up opportunities than on a narrowly defined investment philosophy. The flexibility of this approach allows the fund manager to adapt positioning across market conditions, while remaining anchored to fundamental research and valuation discipline.
Alchemy’s Investment Process – 3I Matrix
- Idea Generation: Tracks a broad universe of ~500 companies, with deep coverage of 100–150 names. Ideas are generated through internal research as well as external inputs such as industry interactions, peer discussions, and sector conferences.
- Investment Process: Managed by the CIO, who retains veto power at multiple stages of research and portfolio construction. Positions are continuously monitored and formally reviewed on a quarterly basis.
- Intervention: Active intervention by the CIO in portfolio sizing, risk management, and exits, based on evolving risk–reward dynamics.
Exits are driven by deterioration in the original investment thesis, adverse risk–reward shifts, or the emergence of superior opportunities elsewhere in the portfolio.
Suitable For
Investors seeking flexible, actively managed equity portfolios with the ability to adapt across market cycles, led by a stable and experienced fund management team.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Alchemy High Growth Select Stock | 4.1 | 21.4 | 23.1 | 20.1 |
| S&P BSE 500 | 4.9 | 14.6 | 17.2 | 16.2 |
| Alpha over Broad Mkt BM | -0.8 | 6.8 | 5.9 | 3.9 |
Performance as of: 30-Nov-25 | Inception Date: 19-Dec-08 | 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.
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