Alchemy Capital

Funds managed

Fund nameAsset ClassLicense
Alchemy Leaders of TomorrowHedge fund(Long only)SEBI AIF Cat 3

https://cafemutual.com/news/cafe-alt/18190-one-year-performance-of-long-only-aifs

(Alchemy Leaders of Tomorrow is long only found via the above mentioned link.)

About the AMC

  • Started in 1999 by Lashit Sanghvi, Ashwin Kedia, Rakesh Jhunjhunwala and Hiren Ved
  • Alchemy leaders of Tomorrow is an open ended fund.
  • Fund managers-
  • Amit Nadekar (CA by profession, started on Sell side, later moved to corporate strategy) manages Alchemy High Growth PMS
  • Hiren Ved (Certified Cost Accountant) manages Alchemy High Growth – Select Stock PMS and Alchemy Leaders of Tomorrow AIF CAT 3
  • Amit Nadekar (CA by profession) manages Alchemy Leaders PMS
  • Vikas Kumar (BA in maths from Delhi University, worked with Dalal & Broacha Stock Broking and collaborated at Reliance Capital) manages Alchemy Ascent PMS

Investment Philosophy 

  • Alchemy is one of the pioneers in Bottom-Up stock selection whereby companies can perform and realize their full potential irrespective of industry conditions
  • A good understanding of trends and latest market developments
  • Considers primary research inviolable for a comprehensive evaluation
  • Consistent and outstanding track record; initial investment of Rs.1 crore in 2002 has grown to Rs. 36.3 crores as on 31st December 2019 in Alchemy High Growth product.

Fund specific strategy

 Alchemy Leaders of Tomorrow aims at capital appreciation over the long run by investing in listed equities, Private Investment in Public Equity on listed Indian equities (PIPES) and IPO opportunities that have successfully adapted to the dynamic economics of their businesses through focus on innovation and ingenuity.

Media

Topic- Alpha Moguls With Alchemy Capital’s Hiren Ved, Media platform- Bloombergquint Date-jan3,2019

2018 is like Dejavu bringing memories of 2013. Small and micro will not contribute as they are in their peaks. Large cap and larger mid caps will lead the market. Alchemy focuses on specific companies with strong balance sheet i.e engaging in stock picking (bottom-up) with growth orientation.

Topic- Alchemy High Growth explained by Mr. Chandraprakash Padiyar (Fund Manager-Alchemy Capital) Media platform name-Alchemy Capital (Youtube), Date-Sep21,2017

https://www.youtube.com/watch?v=XccqkmH9cC4

Fund manager discussed the strategy behind the alchemy high growth fund, it is a multicap with mid cap bias, 15 yrs old fund offering a CAGR of 26%. They are stock pickers and benchmark  agnostic. Investment philosophy- growth focused, companies with strong balance sheet , positive free cash flow, reasonable valuations(GARP)

Topic- Alchemy High Growth Select Stock explained by Mr. Hiren Ved Media platform name – Alchemy capital (youtube), Date- sep21,2017

https://www.youtube.com/watch?v=8iUYIyw_Xk4

Fund manager discussed the strategy behind the alchemy high growth select stock, it is market cap agnostic, relatively concentrated (8-12 stocks) to tap HNI, family offices to leverage their  expertise in stock picking , also because they believe in long run diversified fund tend to replicate market but with concentrated portfolio they believe will be able to generate alpha. Money received from investors is allocated over a period of time (30-60 days) in order to build a portfolio.

Analyst questions

  1. This pandemic has caused economic and emotional suffering to various economies , largest economies are bleeding and will be seeking to retaliate, do you think India is in position to take advantage of the situation? Are we in position to gain trust of the FIIs? What will be the impact in the long run if we are able to leverage and make most of the situation, especially in the alternative investment segment of the country?
  2. Why do you focus on investing in PIPE deals? Can you share with us the problems that you face in PIPE deals?
  3. Being long only, where do you have a competitive advantage over the peer long only funds? Do you have information, analytical or behavioral advantage?
  4. How do you allocate the fund amongst listed equities, PIPE and IPO Opportunities?
  5.  How do you ensure due diligence of the entire fund allocation process?
  6. How often do you perform valuation of the hedge fund, is it done internally or outsourced?
  7. What is the risk matrix that you take into consideration while evaluating risk undertaken by this fund?

Prepared by Vanshika

Reviewed by Rashika Bhatia

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