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Alchemy High Growth

AUM (772 cr) | Inc Date (8-May-2002)

Scheme Rating

IME Scheme Rating

3 of 5 stars

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

4 of 5 stars

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.

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).

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 -4.1 9.4 9.8 20.2
S&P BSE 500 8.4 12.7 16.8 17.1
Alpha over Broad Mkt BM -12.5 -3.3 -7 3.1
S&P BSE 500 8.4 12.7 16.8
Alpha over Category BM -12.5 -3.3 -7

Performance as of: 31-Jan-25 | Inception Date: 08-May-02

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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