Alchemy Long Term Ventures
Our view on the fund, the AMC, the strategy, the performance & the investment team.
IME's Review of Alchemy Long Term Ventures
| Fund Rating | Strategy Rating | Performance Rating |
|---|---|---|
Upgrade | Upgrade | Upgrade |
View on the Fund
While the fund does have the attractiveness of giving investors the ability to gain exposures to late-stage unlisted companies, the fact that a substantial amount of upto 1/3rd of the fund can be in unlisted equities, does require a close-ended structure. Essentially a close-ended structure can force a fund manager to exit positions in unfavourable market conditions (especially if investors do not agree for an extension), which can lead to substantial impact costs if liquidity is low in the small-cap space. Open-ended funds do not have this risk. We recommend investors keen on the fund, driven by an ability to build some exposures to unlisted, consider this risk of close-ended structures prior to investing.
Strategy
Mix of small-cap & Late-Stage Unlisted investing
Fund's Strategy View
The Category III AIF primarily focuses on small-cap equities (0-100%) and unlisted securities (0-35%), particularly businesses nearing listing or secondary exits. The strategy targets high-quality companies aligned focused on the following growth themes - Data Centers & AI, Defence, Green Mobility, Digitalisation, Semiconductors, Premiumisation, Financialisation, Manufacturing, Green Energy, and Healthcare & Biotech. The rationale for including the ability to invest in upto 35% of the fund in unlisted investing allows the fund to (a) explore new sectors & opportunities that may not be represented in the listed space, (b) identify high-growth sectors early in the cycle (c) take advance of potential secondary investing opportunties that may come up in the unlisted space.
Fund Performance
We refrain from evaluating the fund since it is yet to mature (less than 5 years).
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Alchemy Long Term Ventures | ||||
| Nifty Smallcap 250 | ||||
| Alpha over Category BM |
Performance as of: 31-Jan-26 | Inception Date: 01-Sep-23 | 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.
IME's Review of Alchemy PMS
| AMC Rating | Pedigree Rating | Team Rating | Philosophy Rating |
|---|---|---|---|
Upgrade | Upgrade | Upgrade | Upgrade |
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.
AMC Background
Alchemy was founded in 1999 by Lashit Sanghvi, Hiren Ved, Rakesh Jhunjhunwala, and Ashwin Kedia, a group with over 100 years of collective experience in Indian equities. The investment strategies are actively managed by Hiren Ved, who continues to serve as CIO and primary fund manager, while Rakesh Jhunjhunwala and Ashwin Kedia are not involved in day-to-day operations. Alchemy is regarded as one of the strongest bottom-up stock-picking PMS houses in India and has scaled to become one of the largest PMS platforms in the country (ranked among the top four). The continued leadership of Hiren Ved provides long-term stability to the investment team, a critical factor in sustaining performance and organisational growth.
Investment Philosophy
Alchemy relies more on a disciplined and repeatable investment process to identify attractive bottom-up opportunities than on a narrowly defined investment philosophy. The flexibility of this approach allows the fund manager to adapt positioning across market conditions, while remaining anchored to fundamental research and valuation discipline.
Alchemy’s Investment Process – 3I Matrix
- Idea Generation: Tracks a broad universe of ~500 companies, with deep coverage of 100–150 names. Ideas are generated through internal research as well as external inputs such as industry interactions, peer discussions, and sector conferences.
- Investment Process: Managed by the CIO, who retains veto power at multiple stages of research and portfolio construction. Positions are continuously monitored and formally reviewed on a quarterly basis.
- Intervention: Active intervention by the CIO in portfolio sizing, risk management, and exits, based on evolving risk–reward dynamics.
Exits are driven by deterioration in the original investment thesis, adverse risk–reward shifts, or the emergence of superior opportunities elsewhere in the portfolio.
Suitable For
Investors seeking flexible, actively managed equity portfolios with the ability to adapt across market cycles, led by a stable and experienced fund management team.
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