Alchemy Alpha Smallcap - PMS

Investment Objective

To generate long term risk adjusted returns.

Philosophy & Strategy

A High-Risk High Return oriented strategy which aims at generating long term alpha consistently by investing predominantly in small cap companies with Growth at Reasonable Price/Premium (GARP) being the investment philosophy assisted by rule-based algorithms.

Why Alchemy Alpha Smallcap?

Given the dynamic nature, and the niche and emerging sectors Smallcap companies are invested in, investors interested in specific sectors/themes and willing to bear the high risk can consider them. These stocks, however, over a period, may help investors navigate market cycles and volatility better.

Alchemy Alpha Small Cap is a rule-based algorithm driven strategy that is sector agnostic, based on data and researched processes. The strategy is designed with Alchemy’s quantitative framework that provides an edge by virtue of bringing an unbiased and disciplined approach to investing, which is one of the key factors for consistent alpha generation, giving a view of the emerging trends and ensuring a strategic investment selection process.

Terms at a Glance

• CATEGORY - Equity Diversified
• TYPE - Open ended
• BENCHMARK - BSE 500 TRI
• INDICATIVE TENURE OR INVESTMENT HORIZON - 3 – 5 years
• FUND STYLE - Small cap
• LAUNCH DATE - 6th Dec, 2023
• MINIMUM INVESTMENT - INR 50 lakhs
• OTHER TERMS
  Description of types of Securities

  Equity

  Basis of selection of types of Securities as part of the Product/Investment Approach

  Equity stocks are chosen for investment based on following factors:

  • The company fundamentals, as reflected in reported numbers.
  • Investment strategy research regarding various market cycles
  • Risk & Reward ratios

  Allocation of Portfolio across types of Securities

  Upto 100% in equity (cash portion may be deployed in liquid funds/ debt Securities).

  Portfolio Construct: A typical Portfolio may generally consist maximum of 50 stocks across sectors.

  Basis for choice of benchmark

  As per APMI Circular APMI/ 2022-23/02 dated March 23, 2023.

  Risk associated 

  High Risk

  Other salient features, if any

  NA

Fund Manager – Alok Agarwal

Alok Agarwal, with over 22 years experience, specializes in equity fund management. He joined Alchemy in 2022, having previously led flagship funds and the offshore equity desk at PGIM India AMC. He has also worked with Deutsche Asset Management, KR Choksey Securities, Tata Group and Pinnacle Academy. An avid marathoner, Alok holds CA, CFA and CMT certifications, and Master’s in Commerce and Finance.

Co-Fund Manager – Deven Ved

Deven has over 17 years of diverse business experience in financial programming and modelling, program management, shareholder reporting and consulting. In his previous role at HDFC Ergo General Insurance he spearheaded the launch of automated underwriting rule engine, enabling instantaneous policy issuance. Deven’s professional experience also includes working with financial institutions like Bharti AXA, Tata AIA Life and Deloitte Consulting. He’s highly analytical in his approach and holds a Post Graduate Diploma in Actuarial Science and Bachelor of Science Degree in Statistics from St. Xaviers College, Mumbai.

Performance

Data as of October 31, 2024 | *Inception Date: December 6, 2023

#Performance related information provided herein is not verified by SEBI | Returns are net of fees, expenses, and taxes (if applicable). | Returns less than 365 days: Absolute. | Past Performance is not indicative of future performance. | The above performance figures are aggregate of all discretionary clients; the investor's actual portfolio may differ. | Please refer the link for viewing Performance relative to other portfolio managers: https://www.apmiindia.org/apmi/welcomeiaperformance.htm?action=PMSmenu

**Nifty Smallcap 250 TRI is more relevant benchmark for the strategy as the investable universe is bottom 750 out of 1000 stocks by market capitalization.