Fund Snapshot
| Year of Inception | NA |
| Number of Stocks | Cat III AIF |
| Investment Horizon | Long Term |
Investment Philosophy
- Carnelian Capital Compounder Fund believes in growth investing at fair valuations and obsesses about the risk-reward trade-off at Carnelian. The fund favours definite returns over immediate returns as long-term investors, and don’t mind short-term underperformance.
- When the risk-reward payoff is convincing, they are willing to be contrarians, and don’t mind sitting on cash when we see weakness.
Investment Framework
Carnelian Capital Compounder Fund investment framework is structured around four key pillars:
- Quality – Focuses on business and management quality.
- Growth – Includes:
- Magic: Accelerated earnings growth and valuation re-rating.
- Compounder: Sustainable earnings growth.
- Forensic Analysis (CLEAR) – Evaluates:
- Cash flow analysis
- Liability analysis
- Earnings quality analysis
- Asset quality analysis
- Related party & governance issues
- Valuation – Ensures reasonable valuation relative to growth.
The framework emphasizes “Quality Growth at a Reasonable Price”, integrating business quality, earnings sustainability, forensic risk analysis, and fair valuation.
Carnelian Advantages Over Competitors
Carnelian Capital has a unique approach & unique insights into investing. Carnelian Capital is an exceptional independent, entrepreneurial boutique with a reputed board of advisors. Carnelian focuses on long-term approach with high active share (differentiated portfolio), Concentrated QGARP portfolio –Quality Growth companies (Business & Management) at a Reasonable Price. This offers them a unique blend of companies with accelerated and sustainable growth proprietary forensic analysis known for identifying larger themes, trends /stocks early.
People
Carnelian Capital founders are Industry veterans with strong complementary skill sets. They have a deep understanding of capital markets, businesses & strong relations with corporate India/industry which helps them invest in the right fund.
Process
Carnelian Capital focuses on a unique forensic framework –“CLEAR”. Carnelian Capital focuses on quality. Carnelian follows a disciplined investment process & it has a differentiated approach to risk management.
Fund Overview
The Capital Compounder Strategy (PMS) is a long-only, multi-cap, and sector-agnostic investment approach designed to capitalize on India’s “trillion-dollar opportunity.” It follows a QGARP (Quality Growth at a Reasonable Price) philosophy, focusing on companies with strong fundamentals.
Key Features:
- Diversified Portfolio: Invests in a mix of large, mid, and small-cap listed companies in a 50:30:20 ratio.
- Selection Criteria: Targets businesses with niche expertise, strong growth potential, proven track records, and excellent management.
- Portfolio Composition: Holds 20-25 stocks and is benchmarked against the BSE 500 TRI.
This strategy aims to achieve sustainable long-term growth by identifying high-quality companies with scalable opportunities.
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Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
Vikas Khemani
Vikas Khemani is the Founder of Carnelian Asset Advisors with over 23 years of experience in the Indian capital markets. Before founding Carnelian, he served as the CEO of Edelweiss Securities Ltd. for 17 years, where he built its institutional equities, investment banking, and equity research businesses into market-leading franchises. He is a triple-qualified investment professional, holding the Chartered Accountant (CA), Chartered Financial Analyst (CFA), and Company Secretary (CS) designations.
Manoj Bahety
Manoj Bahety has worked in financial services for almost 27 years, gaining deep understanding of forensic research and managing investments. Now a fund manager at Carnelian, he puts heavy focus on research when picking stocks for investment. Before starting Carnelian with Vikas Khemani, Manoj had important positions at Edelweiss Securities. These included the Deputy Head of Institutional Equity Research, the Head of Forensic Research, and the Head of Thematic & Mid-Cap Research. At Edelweiss, Manoj developed Analysis Beyond Consensus (ABC Research). This system helps institutional investors make better choices by using solid data instead of just relying on what companies report. Manoj's research has guided investment choices around the world. Outside of his work at Carnelian, Manoj is active with the CFA Institute. He participates in groups like the India Advocacy Committee and the Global Capital Markets Policy Council (CDPC). Manoj’s ability to analyse information and his careful, step-by-step way of doing things are key to how Carnelian operates and makes investment decisions. His past experiences and dedication to thorough research make him a valuable asset in the financial world. In summary, Manoj's extensive background and commitment to data-driven analysis greatly improve Carnelian's investment strategies.
Swati Khemani
Swati Khemani brings 23 years of know-how in the financial world to the table. She’s a great example of today’s Indian woman in business, handling leadership roles, understanding investments, and taking on the challenges of being an entrepreneur. Her career path is quite diverse. She’s worked in equity research, selling to big institutions, investment banking, and managing people. All this experience gives her a wide view of how the financial industry works. As one of the people who started Carnelian, she plays a big part in running the business and handling the company’s money. She’s also known for being a mentor and leading with a focus on people, which has helped create a positive work environment at Carnelian. This approach has also been key in building strong relationships with both clients and other businesses. Swati has always been a supporter of Carnelian’s goals, helping to improve the way the company works, its governance, and its plans for the future. Her career is a story of bouncing back from challenges and striving for success, as she juggles a demanding job with her roles as an entrepreneur and a family leader.
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The Carnelian Capital Compounder Strategy is a long-only, multi-cap, sector-agnostic Portfolio Management Service (PMS) that seeks to create long-term wealth by investing in high-quality businesses with strong growth potential. The strategy follows a Quality Growth at a Reasonable Price (QGARP) approach and aims to capitalize on India's long-term economic growth opportunities.
The strategy typically maintains a concentrated portfolio of 20–25 stocks across large-cap, mid-cap, and small-cap companies. The allocation is broadly diversified across market capitalizations while remaining focused on businesses with scalable growth opportunities, strong fundamentals, and capable management teams.
The strategy is built on four pillars: Quality, Growth, Forensic Analysis (CLEAR), and Valuation. It evaluates business quality, management capability, earnings sustainability, financial health, governance standards, and valuation attractiveness before making investment decisions.
The proprietary CLEAR framework conducts deep forensic analysis covering Cash Flows, Liabilities, Earnings Quality, Asset Quality, and Related-Party & Governance Risks. This process is designed to identify potential red flags early and help preserve capital while improving investment quality.
The strategy is suitable for long-term investors seeking exposure to a professionally managed equity portfolio focused on quality growth businesses. It may appeal to investors who value disciplined stock selection, risk management, and a differentiated investment approach that prioritizes sustainable compounding over short-term market movements.
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