Scheme Rating
IME Scheme Rating
Wait for performance to improve: 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.
IME Strategy Rating
GARP Approach: 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.
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).
IME View on Alchemy High Growth
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 | 45.1 | 16.4 | 15.2 | 21.7 |
S&P BSE 500 TRI | 41.1 | 18.4 | 22.4 | 17.9 |
Alpha over Broad Mkt BM | 4 | -2 | -7.2 | 3.8 |
Nifty 500 | 40.2 | 17.2 | 21 | |
Alpha over Category BM | 4.9 | -0.8 | -5.8 |
Performance as of: 30-Sep-24 | Inception Date: 08-May-02
Fund Managers
Alok Agarwal | 4-star rated FM
FM | 16 yrs Experience | 2 yrs at current firm
Past Experience: PGIM, Deutsche AMC and K.R Choksey
Alok Agarwal brings more than 16 years of FM experience. Prior to this, He was associated as a FM with PGIM, Deutsche AMC and K.R Choksey. He is a CFA and CMT.
Fee Structure
Fee Structure | Fee |
---|---|
Fixed Fee Structure | 2.5 |
Variable Fee Structures | 1.5% fixed + 15% above 10% hurdle |
Exit Fees | 1yr(1%) |
AMC
AMC: Alchemy PMS (click link for detailed AMC review)
Not a top recommendation (at this time) due to weak recent performance: Backed by solid founders, a CIO that is a co-founder and well-respected investor and a long track record of identifying interesting bottom-up investment opportunities, Alchemy has all the ingredients for a successful PMS business. However, their performance has been very sub-par in recent years, and it is this underperformance that is the primary reason behind Alchemy not being a 5 or 4-star rated PMS.
AMC Rating
AMC Pedigree
AMC Size
Team Pedigree
Inv Philosophy
Performance
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