About Company
Alchemy Capital Management Pvt Ltd
Alchemy Group, a leading investment management firm in India, has been operating successfully since 2002. Founded by four seasoned equity market professionals, each with more than 30 years of experience, the group boasts a strong foundation. Under the leadership of its Chief Investment Officer, Hiren Ved, the team, which has collaborated for over two decades, has fostered a culture of excellence and established an institutional pedigree focused on consistently delivering superior performance to its clients. The Alchemy Group currently manages assets worth USD 1.2 billion. Alchemy is led by Co-Founder Hiren Ved, who also serves as the Director & CIO. With a strong continuity in investment philosophy and strategy, Hiren and the Alchemy team have cultivated a culture of performance excellence. This has been instrumental in maintaining a consistent track record in their investment strategy. Alchemy boasts a comprehensive network of relationships developed over decades. This network provides the team with valuable insights into stocks, sectors, businesses, and potential investment opportunities, ensuring they remain ahead of market trends.
Alchemy Alpha Small Cap
Fund Snapshot
| Objective | To generate long-term risk-adjusted returns |
| Type of securities | Equity |
| Investment Approach | Company Fundamentals & Risk & Reward Ratios |
| Portfolio Allocation | Up to 100% in equity |
| Portfolio Construct | Max of 50 stocks |
| Benchmark | BSE 500 Tri |
| Investment Horizon | 3 to 5 years |
Fund Overview
Alchemy Alpha Small Cap is one of the Portfolio Management Services products managed by M/s Alchemy Capital Management Pvt. Ltd., a SEBI-registered Portfolio Manager.
Alchemy Alpha Small Cap is a rule-based algorithm driven strategy that is sector agnostic, based on data and researched processes. A High-Risk High Return oriented strategy which aims at generating long term alpha consistently by investing in small cap companies.
The fund is diversified across various sectors, with top holdings including Blue Star Ltd (6.4%), Nippon Life India Asset Management Ltd (5.8%), and Firstsource Solutions Ltd (5.7%). Other notable stocks include Aegis Logistics Ltd, Cholamandalam Financial Holdings Ltd, and Kfin Technologies Ltd. Sector & Market Cap Allocation Industrials (33.0%) and Financials (21.4%) form the largest sector allocations, followed by Consumer Discretionary (10.4%) and Consumer Staples (9.1%). The fund is heavily invested in small-cap stocks (66%), with mid-cap exposure at 32% and cash allocation at 2%.
Investment Style
At Alchemy Capital Management, the investment philosophy is driven by a quantitative approach to ensure a disciplined and unbiased strategy for generating consistent alpha.
Key Principles:
Right Stock + Right Theme + Right Sector + Right Market Cycle = The formula for a successful investment strategy.
Why Quantitative Investment?
- Traditional active investing relies on subjective decision-making and forecasting based on individual perspectives, leading to inconsistencies.
- The Alchemy Capital quantitative investment model is data-driven, model-based, and rigorously back-tested to eliminate human biases.
- Portfolio construction focuses on optimal timing and risk-reward metrics to achieve sustainable returns.
Investment Criteria
Alchemy Capital investment approach is structured around three core pillars:
1. Growth
- Revenue Growth
- Income Expansion
- Free Cash Flow Generation
- Capital Expenditure (CAPEX)
2. Market Cycle
- Performance vs. Market Index
- Relative Drawdown Management
- Price Performance Analysis
- Volatility Assessment
- Shareholding Trends
3. Fundamental Metrics
- Cash Conversion Cycle
- Working Capital Efficiency
- Return on Capital
- Debt Levels
These factors are an integral part of the Alchemy Quant Proprietary Model, ensuring an objective and structured approach to investment decision-making.
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Alchemy Alpha Small cap
Benchmark: BSE 500 TRI
Compare fund returns and benchmark performance across multiple investment periods using a visual bar graph.
Review and compare fund returns against benchmark performance across different investment periods in a detailed tabular format.
Alchemy Capital Management Pvt Ltd
| AUM(Cr.) | 1M | 3M | 6M | 1Y | 2Y | 3Y | 4Y | 5Y | Ince. | |
| Performance | ₹8.20 | 6.17 | 31.07 | 15.99 | 10.29 | 9.38 | NA | NA | NA | 17.51 |
| Benchmark | NA | 1.73 | 12.10 | -3.53 | -1.96 | 1.52 | NA | NA | NA | 9.31 |
Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
Hiren Ved
Hiren Ved, an equity market veteran, serves as the Director & CIO at Alchemy Capital Management where he has been leading the firm’s Asset Management business. With over 30 years of experience in the Indian equities market, Hiren has developed a sustainable long-term investment philosophy based on fundamental research. He is known for his deep sector knowledge, bottom-up research skills and stock picking abilities. He holds a graduate degree in Accounting from Mumbai University and a post-graduation in Management & Cost Accounting from The Institute of Cost Accountants of India.
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The primary objective of Alchemy Capital Management Pvt. Ltd. Alchemy Alpha Small Cap is to generate long-term risk-adjusted returns through investments in fundamentally strong small-cap companies. The strategy focuses on identifying growth opportunities using a quantitative and rule-based investment framework designed to create sustainable alpha over time.
This PMS strategy is best suited for investors with a high-risk appetite and a long-term investment horizon of at least three to five years. Since the portfolio is largely focused on small-cap stocks, investors should be comfortable with short-term market volatility in exchange for potentially higher long-term growth opportunities.
The Alchemy quantitative model works through a data-driven investment process that evaluates companies based on growth indicators, market cycle positioning, and fundamental strength. Instead of relying on emotional or subjective stock selection, the model uses back-tested research and risk-reward analysis to identify companies with strong earnings potential and efficient capital management.
Alchemy Alpha Small Cap can allocate up to 100% of its portfolio to equities while maintaining a diversified structure of up to 50 stocks. The strategy currently has significant exposure to small-cap companies along with selective mid-cap investments. Industrials and Financials are among the dominant sectors in the portfolio, reflecting the fund’s growth-oriented investment approach.
What sets Alchemy Alpha Small Cap apart is its algorithm-driven and sector-agnostic investment process. While many traditional PMS strategies depend heavily on fund manager judgement, this strategy follows a disciplined quantitative framework backed by research, historical testing, and objective financial metrics. This approach aims to reduce human bias and improve consistency in investment decisions over the long term.