Scheme Rating
IME Scheme Rating
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
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
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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Note: PMS AMC & Scheme Reviews and Ratings are based on IME Capital’s Proprietary Review and Rating Methodology (read more here: AMC Rating & Scheme Ratings). These reflect the unbiased views of our central research team, based on our assessment of the investment value of these PMS/AIF strategies for our investors. We follow a highly stringent rating-criteria, where approximately 50% of PMS AMC’s & strategies would be rated 2-star or below (this is not meant to indicate that these funds are not investment-worthy, but that they do not currently fulfill the requirements we focus on for recommending funds to our investors — based on our internal views on the merit of the AMC/strategy relative to peers). Reviews & Ratings are primarily based on research of publicly available information (SEBI disclosures, PMS websites, PMS-aggregation platforms, webinar recording, media interviews etc.) and no explicit consent is required from AMCs for the same. While we endeavour to do further due-diligence via direct interactions with the investment teams of AMCs, this is typically restricted to AMC’s that meet our foundational fund selection criteria (reviews on lower-rated AMCs are often based solely on publicly available information). The views reflected in our Reviews & Ratings, are our independent views and may not be shared by the AMC’s and the investment teams. Please read detailed disclaimer for more.