Carnelian Shift
Carnelian PMS | Equity | | PMSIME's View on Carnelian Shift
Strategy
Focused on - Manufacturing & Technology Sector
Investment Fund
Carnelian Shift is a strategy aimed at identifying investment opportunities in manufacturing and technology. While Carnelian is a relatively young AMC, they are backed by experienced finance professionals albeit ones that lack a public track record of fund management and a good start to performance in the PMS.
Fund's Strategy View
Carnelian Shift is a long-only Mid & small-cap strategy, focused on investing in 2 key themes - manufacturing & technology. The focus is on mid & small-cap companies with existing core competencies, strong BS, governance and returns ratios.
Fund Performance
A lack of 5 yr trailing performance data from our identified reliable data sources, prevents us from having a clear performance rating on the fund.
IME's View on Carnelian PMS
View on AMC
Carnelian is a young firm in the Indian alternatives space with an impressive founding team from ex-senior investment team members of Edelweiss Securities. Vikas Khemani, the ex-CEO, and Manoj, the head of research, have strong research and investment business-building pedigrees. The investment philosophy and processes are well defined, combining quality growth investing (QGARP) with deep forensic diligence and thematic insights. Performance has been strong.
AMC's Pedigree
The firm is fully founder-owned and led by seasoned capital market professionals with backgrounds in institutional equities, forensic research, and business leadership.
AMC Team
Carnelian is founded by seasoned capital markets professionals with deep institutional experience. Vikas Khemani, former CEO of Edelweiss Securities, brings strategic leadership and decades of market insight. Manoj Bahety, a pioneer in forensic research, developed the acclaimed “Analysis Beyond Consensus” framework. Swati Khemani adds depth across equity research, sales, and business operations. Despite the lack of fund management experience in their prior roles, they have proven their ability to execute the stated investment philosophy well.
Investment Philosophy
Carnelian’s investment philosophy is its QGARP (Quality Growth at Reasonable Price) approach. The framework seeks to identify high-quality businesses with strong cash flows, clean governance, and sustainable moats, while ensuring valuations are reasonable relative to growth prospects. Their research process integrates thematic foresight, bottom-up stock picking, and a proprietary forensic filter called CLEAR—used to evaluate cash flows, liabilities, earnings quality, and corporate governance. Growth is captured through two lenses: “Magic” stocks that are entering accelerated earnings phases due to inflection points like capex completion or leadership change, and “Compounders” that deliver stable, long-duration returns.
Investment Strategy
Carnelian Shift is designed to find attractive opportunities in structural decadal shifts in manufacturing and tech evolution.
Carnelian employs a Concentrated QGARP portfolio - Quality Growth companies (Business & Management) at a Reasonable Price. The strategy aims to hold 20-25 stocks in the portfolio.
Investment Framework
- Investing in good businesses: with traits such as profitable, robust cost leadership, opportunity and market size, free cash flow generation, the incremental return on capital, time test and easy to understand, and sustainable moat.
- Great Management: evaluated based on integrity, modesty and capability, efficient capital allocation and a record of strong governance and risk management culture.
- Favourable Risk Reward: upside potential with margin of safety (through business risk, balance sheet risk, and valuations)
- Negative Screening: Avoid companies based on Aggressive accounting principles, High financial leverage, Low tax incidence, Management having misaligned objectives, Management with poor governance record and/or Management in hurry to create value.
Forensic Analysis based on CLEAR Framework
Carnelian’s forensic analysis involves a 2 step approach:
- Carnelian forensic check: An automated template screening last 10 years of historical data, highlighting potential minesweepers, which get rejected at this stage
- Forensic deep dive: CLEAR Framework Their forensic team will deeply analyse the annual reports % financials which will be presented in a prescribed format to the investment committee.
Trailing Performance
| 1yr | 3yr | 5yr | Since Inception | |
|---|---|---|---|---|
| Carnelian Shift | -3.1 | 30.5 | 35.7 | |
| S&P BSE 500 | -6.6 | 14.7 | 20.3 | |
| Alpha over Broad Mkt BM | 3.5 | 15.8 | 15.4 | |
| Nifty Midcap 150 | -5.7 | 21.8 | ||
| Alpha over Category BM | 2.6 | 8.7 |
Performance as of: 30-Sep-25 | Inception Date: 06-Oct-20 | Performance are post-fees, pre-taxes. Global funds denominated in USD or fund currency.
Investment team
Vikas Khemani | 4-star rated FM
Co-Founder | 30 yrs Experience | 8 yrs at current firm
Past Experience: President (Edelweiss Capital), AVP (ICICI Securities)
Vikas Khemani has over 2 decades of experience of which he spent 17 years incubating and building several businesses to leadership positions including Institutional Equities and Equity Research as a CEO at Edelweiss Securities. He is associated with several industry bodies and committees including the CII National Council on Corporate Governance, FICCI Capital Markets Committee, Executive Council of Bombay Management Association. Vikas Khemani comes with strong business acumen and a deep understanding of the capital markets along with strong relationships with Corporate India.
Manoj Bahety | 4-star rated FM
Co-Founder | 28 yrs Experience | 7 yrs at current firm
Past Experience: Managing Partner (Omniscient Capital Advisors), Deputy Head Research (Edelweiss Securities), Sr. Manager (Morgan Stanley), Manager (Reliance Industries)
Manoj Bahety is a CA and CFA Charter holder with 20 years of rich and diverse financial services with marquee institutions. Manoj spent 11 years at Edelweiss Securities as Dy. Head - Institutional Equity Research, Head - forensic, thematic & mid-cap research. He is known for his "Analysis Beyond Consensus" forensic research approach which helped in avoiding pitfalls and identifying several multi-bagger ideas.
Swati Khemani | 4-star rated FM
Partner | 24 yrs Experience | 7 yrs at current firm
Past Experience: Edelweiss
Swati Khemani one of the Partners at Carnelian AMC. She brings over 13 years of experience in the financial services industry, with her previous stints at Edelweiss and her own venture Newedge Consulting. She is a CA and did her graduations in BCom.
