Alchemy Leaders of Tomorrow AIF
Alchemy PMS | Equity | | AIFIME's View on Alchemy Leaders of Tomorrow AIF
Strategy
Highly flexible strategy
Investment Fund
Alchemy leader of tomorrow can be a good option especially for investors looking for a highly flexible strategy backed by a pedigreed team. While the performance has been good for this particular fund, we do point out that Alchemy had suffered underperformance in their older funds during 2018-20 period, a phenomenon not uncommon amongst managers but would like to point out the same for investors.
Fund's Strategy View
Unlike certain peers who have tightly defined investment strategies, Alchemy has a more flexible approach. This is both good & bad. It allows for the fund manager to pivot strategies in dynamic market conditions, but it leads to a lower level of clarity on the exact nature of likely investments. While the core investment philosophy remains similar to the Alchemy PMS offerings, the AIF includes the potential to invest in pre-IPO opportunities that have the potential to deliver higher upsides (though with a higher level of risk).
Fund Performance
The fund has outperformed peers & is amongst the top performing schemes in this category in the last 5 year trailing returns.
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
The strategy aims to invest in a) Listed equities, b) Private investment in public equity placements, and c) IPO and pre-IPO opportunities. The strategy is sector agnostic with a focus on "Growth at a Reasonable Price". 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.
STRATEGY
Alchemy 'Leaders of Tomorrow' focusses on multiple macro-trend that is driving value creation. These trends can be broadly classified as 'Unorganised to Organised'. MAJOR CHANGES IN THE ECONOMY (2013-17)- Aadhar
- Direct Benefit Transfer
- GST
- Online Commerce
- RERA
- Bankruptcy Code
- Demonitization
- Challenges to unorganised companies as price-to-quality perception gap erodes
- Changes in behaviour and curtails demand for discretionary/luxury goods
- Financialisation of savings
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Alchemy Leaders of Tomorrow AIF | -9.8 | 17 | 24.99 | 15.2 |
| S&P BSE 500 | -6.6 | 14.7 | 19.2 | 11.96 |
| Alpha over Broad Mkt BM | -3.2 | 2.3 | 5.8 | 3.2 |
Performance as of: 30-Sep-25 | Inception Date: 03-Jan-18 | 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.
