Carnelian Contra Portfolio Strategy
Fund Snapshot
|
Strategy |
Multi-cap with 60% large cap bias |
|
Stock universe |
~25 stocks |
|
Benchmark |
BSE 500 TRI |
|
Min. investment amount |
INR 50 Lakhs |
|
Exit load |
1% if redeemed within 1 year |
Objective
Generate superior risk-adjusted return by following a contrarian absolute return approach
Strategy
Multi-cap with 60% large-cap bias, sector-agnostic portfolio designed to capture:
- Structural growth story with temporary dislocation
- Businesses facing unfavourable cycle
- Deep value stocks with good dividends
- Special situations like demerger, open offers, acquisitions, etc.
- Portfolio of 20-25 stocks filtered through carnelian forensic lens; benchmarked against BSE 500 TRI
- Actively managed portfolio with a long-term approach
Offerings
- ~12%-15%+ expected 3-year earnings CAGR
- ROE > ~15%
- D/E < ~1.5
- Likely margin expansion
- Dividend yield ~3-4%
- Portfolio beta < 1
Investment Framework
Quality
- Business (PROFITS)
- Management (IMPRESS)
Growth
- Magic – accelerated earnings growth & valuation re-rating
- Compounder – stable earnings growth
Forensic Analysis - CLEAR
- Cash flow analysis
- Liability analysis
- Earnings quality analysis
- Asset quality analysis
- Related party & governance issues
Valuation
- Reasonable valuation
- relative to growth
Risk Factors
- Reversal of business cycle taking longer than expected
- Re-rating of deep value stocks taking longer
- Temporary dislocation in business may later become permanent dislocation
- Periods of underperformance:
- Absolute return-oriented approach may lead to underperformance with benchmark
The Competitive Advantage
- Independent, entrepreneurial boutique with a reputed board of advisors
- Long-term approach with high active share (differentiated portfolio)
- Concentrated QGARP portfolio – Quality Growth companies (Business & Management) at a Reasonable Price
- Offers a unique blend of companies with accelerated and sustainable growth
- Proprietary forensic analysis
- Known for identifying larger themes, trends /stocks early
PEOPLE
- Founders are industry veterans with strong complementary skill sets
- Deep understanding of capital markets & businesses
- Strong relations with corporate India/industry
- Team of 70 passionate/driven professionals
- 100% founder owned – skin in the game
PROCESS
- Unique forensic framework – “CLEAR”
- Focus on quality
- Screen for red flags
- Disciplined investment process
- Differentiated approach to risk management
- Processes driven by core values.
Investing With Clarity, Not Complexity
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Track how the fund has performed against its benchmark over time through a comparative line graph analysis.
CARNELIAN CONTRA PORTFOLIO STRATEGY
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.
Carnelian Asset Management & Advisors Pvt Ltd
| AUM(Cr.) | 1M | 3M | 6M | 1Y | 2Y | 3Y | 4Y | 5Y | Ince. | |
| Performance | ₹129.00 | -0.80 | 11.80 | -0.26 | 0.23 | 1.22 | 22.21 | 27.53 | NA | 24.32 |
| Benchmark | NA | 1.73 | 12.10 | -3.53 | -1.96 | 1.52 | 12.53 | 15.29 | NA | 11.37 |
Learn about the experienced fund managers responsible for investment decisions, portfolio strategy, and long-term fund performance.
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.
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.
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.
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Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.
The strategy follows a contrarian, multi-cap investment approach with a 60% large-cap bias. It focuses on identifying temporarily out-of-favor businesses, deep value opportunities, and special situations that may offer long-term upside potential.
The portfolio is relatively concentrated and generally consists of around 20–25 stocks. This approach allows the fund manager to maintain focused exposure to high-conviction ideas.
The strategy looks for companies experiencing temporary business dislocations, undervalued businesses with strong dividend potential, cyclical recovery stories, and special situations such as mergers, demergers, acquisitions, and open offers.
The portfolio uses a proprietary forensic framework called CLEAR, which evaluates cash flows, liabilities, earnings quality, asset quality, and governance standards. The strategy also focuses on companies with manageable debt levels, healthy ROE, and reasonable valuations.
The Carnelian Contra Portfolio Strategy may suit investors looking for a long-term, actively managed equity portfolio with a contrarian approach. It is generally more suitable for investors comfortable with temporary periods of underperformance while seeking long-term risk-adjusted returns.