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Carnelian Compounder Strategy

Distributed through AltPort Experts. Comprehensive fund documentation can be accessed through our research team.
Category PMS
Company Carnelian Asset Management and Advisors Pvt Ltd
Fund Managers Vikas Khemani, Manoj Bahety, Swati Khemani
Share: f x in w

Fund Snapshot

Year of Inception 16, Mar 2020
Number of Stocks 15 – 25
Investment Horizon Carnelian Compounder Strategy is a long-term, multi-cap strategy that seeks to generate sustainable alpha and compound capital over time through the MCO framework. The investment offers an unconventional blend of Magic (accelerated growth) with stable or growing companies who are also actively engaged in opportunistic funds management practices
Fund Managers Vikas Khemani

Vikas Khemani, Manoj Bahety, Sachin Jain, and Swati Khemani established Carnelian Asset Management as an investment management business to pursue their interest in capital markets. The objective of Carnelian is to assist clients in creating and safeguarding their wealth by investing in equities. Carnelian strives to establish a worldwide scale asset management platform recognised for its knowledge and driven by its strong beliefs.

Shortly, Carnelian Asset Management will provide Wealth Management, Portfolio management, and Credit-related services to its clients.

They provide financial services for both businesses and individuals. They work with insurance brokers, financial advisors, bankers and many more to provide clients with the right advice on their protection needs.

Investment Philosophy

  • Carnelian Asset Management believes that investing success is the result of making sound judgments over time. Decisions that are made “Objectively, Free of any prejudice” should be based on the “Probability of result” and the “Risk reward.”
  • They think investing in excellent development firms managed by exceptional management at a reasonable price is a good idea.
  • They’ve developed a proprietary quantitative and qualitative method to eliminate possibilities.
  • They think that the margin of safety is not only found in price but also in thorough research.
  • They think that one can never make money on borrowed convictions.
  • they’re glad to be a contrarian when the risk-reward profile is favourable: regressing to mean mimicry.
  • They believe in taking things slow and long-term. Investing is similar to watching grass grow.
  • They prefer assured results to immediate returns.
  • They don’t mind sitting on cash as long as they can’t find a better purpose for it.

Investment Strategy

The Carnelian Compounder Strategy is a multi-strategy mutual fund that uses its own MCO framework to achieve superior performance across market cycles. They in the Carnelian realm believe that investing success is attributable to making excellent judgments over an extended period. Good decisions are made “Objectively, Free of any bias”, taking into account “Probability of occurrence” and “Risk reward.”The Carnelian Compounder Strategy is a multi-cap, long-only sector agnostic strategy that aims to produce semi-permanent alpha and compound capital over a long period through the MCO framework. The Strategy is a unique and unusual mix of Magic (accelerated growth), Compounder (steady growth) & Opportunistic firms.An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that gathers money from knowledgeable investors to invest with a particular strategy to meet specific goals.The Carnelian Capital Compounder Fund is a category III AIF that provides long-term alpha and capital growth. The minimum investment amount according to SEBI rules is INR 1 crore.

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Section: Fund Leadership
Meet the Fund Managers

Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.

Vikas Khemani

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

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

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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Section: Help & Support
Frequently Asked Questions

Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.

1. What is the investment objective of the Carnelian Capital Compounder Fund? +

The Carnelian Capital Compounder Fund is a Category III AIF designed to generate long-term alpha and compound investor capital through a concentrated portfolio of high-quality businesses. The strategy combines accelerated growth opportunities, steady compounders, and select opportunistic investments using Carnelian's proprietary MCO framework.

2. Who manages the Carnelian Capital Compounder Fund? +

The fund is led by Vikas Khemani and is supported by a team of experienced investment professionals at Carnelian Asset Management & Advisors. The firm's founders include Vikas Khemani, Manoj Bahety, Sachin Jain, and Swati Khemani.

3. What type of companies does the fund invest in? +

The strategy invests in businesses with strong growth potential, capable management teams, healthy financials, and attractive valuations. It follows a multi-cap, sector-agnostic approach, allowing the fund to identify opportunities across industries and market capitalizations.

4. What is the MCO framework used by the fund? +

The MCO framework combines three investment styles: Magic (companies experiencing accelerated growth), Compounders (businesses with consistent earnings growth), and Opportunistic investments where attractive risk-reward opportunities emerge. This diversified approach aims to perform across varying market conditions.

5. What is the minimum investment amount and who is the fund suitable for? +

As a Category III Alternative Investment Fund (AIF), the Carnelian Capital Compounder Fund requires a minimum investment of ₹1 crore as per SEBI regulations. It is suitable for high-net-worth individuals, family offices, and institutional investors seeking long-term wealth creation through a professionally managed equity strategy.

Section: Insights & Articles
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