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.
Investment Philosophy
Alchemy High Growth Select Stock follows a concentrated focused strategy (the usual portfolio will have between 8-12 stocks), that aims to invest in only the top ideas of Alchemy's investment team. Similar to Alchemy High Growth, the investment strategy is flexible and allows the fund manager to shift between investment styles & market capitalizations based on where the best opportunities are presented.
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.
Exit strategy based on risk-reward outlook, better opportunities, and/or hypothesis not playing out.
Strong Investment Team Alchemy High Growth Select Stock is managed by a seasoned and respected investment professional, Hiren Ved, who is also the CIO and has extensive experience in equity investing.Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Alchemy High Growth Select Stock | -1.9 | 19 | 24.4 | 19.9 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 16 |
| Alpha over Broad Mkt BM | 4.7 | 4.3 | 5.2 | 3.9 |
Performance as of: 30-Sep-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.
