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Alchemy High Growth Select Stock

AUM (4234 cr) | Inc Date (19-Dec-2008)

Scheme Rating

IME Scheme Rating

3 of 5 stars

While performance has not been as strong as some of our other top-rated Flexi-cap strategies, Alchemy High Growth Select Stock benefits from the benefit of being run by a seasoned & experienced co-founder/CIO. We need to see this reverse in order to consider investing in this scheme. We believe that given Alchemy’s strong pedigree, that underperformance should be addressed going forward. Initial signs of this recovery are evident since CY23.

IME Strategy Rating

4 of 5 stars

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.

AMC Rating

3 of 5 stars

AMC: Alchemy PMS (click link for detailed AMC review)

Despite having strong founders, a respected CIO, and a history of identifying good investment opportunities, Alchemy’s recent underperformance is the main reason why it is not rated as a 5 or 4-star PMS.

PMS Scheme Ratings are driven by IME’s Proprietary Scheme Rating Methodology, which takes into account our ratings of the Scheme’s investment strategy, its maturity, the investment team, and our separate rating on the AMC that runs this particular scheme. Our views on each of these individual criteria are available via the IME RMS – which you can view by reaching out to one of our relationship managers (using either the live chat or book appointment feature on this site).

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.

Trailing Performance

1yr 3yr 5yr Since Inception
Alchemy High Growth Select Stock 19 15.8 18 20.2
S&P BSE 500 8.4 12.7 16.8 16.3
Alpha over Broad Mkt BM 10.6 3.1 1.2 3.9
S&P BSE 500 8.4 12.7 16.8
Alpha over Category BM 10.6 3.1 1.2

Performance as of: 31-Jan-25 | Inception Date: 19-Dec-08

Fund Managers

Hiren Ved | 5-star rated FM

CIO | 34 yrs Experience | 26 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.

Fee Structure

Fee Structure Fee
Fixed Fee Structure 2.5
Variable Fee Structures 1.5% fixed + 15% above 10% hurdle
Exit Fees 1yr(1%)

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