BackJhunjhunwala-backed Alchemy launches new AIF
With a portfolio of 20-25 stocks, Alchemy Emerging Leaders of Tomorrow will invest at least 65% in mid and small cap stocks
PremiumAlchemy Capital Management (Alchemy) has launched a new Category III Alternative Investment Fund (AIF)—Alchemy Emerging Leaders of Tomorrow. With a portfolio of 20-25 stocks, the fund will invest at least 65% in mid and small cap stocks. Investments will also include large caps, and around 10% in IPO opportunities. Most of Alchemy’s current schemes follow a multi cap strategy. The latest fund has a tenure of 4 four years and minimum investment of ₹1 crore.
Category III AIFs, which include hedge funds, use complex trading strategies and leverage to generate returns.
Alchemy, which was co-founded by Hiren Ved, Rakesh Jhunjhunwala and others in 1999, is a portfolio management services (PMS) provider with assets of ₹7,500 crore. Jhunjhunwala, who died last month, had made a private equity investment in Alchemy but was not involved in its day-to-day running.
Alchemy Emerging Leaders of Tomorrow will be managed by Hiren Ved, co-founder, director, CEO, and CIO; and Mythili Balakrishnan, co-fund manager, Alchemy.
According to the PMS provider, the latest fund will invest in high-quality companies with strong growth prospects benefitting from themes such as India’s rising discretionary spending, digitalization, global outsourcing, import substitution and improving manufacturing competitiveness. “In the last 5-7 years, the economy has taken a lot of pain, especially the small and mid-sized companies, and also the ones which are largely domestic or manufacturing focussed. In our view, if these companies have survived the tough years, then, there’s a significant growth opportunity," says Hiren Ved.
He also feels that the trend of the big companies getting bigger and the organized sector players taking away market share from the unorganized ones has already played out. “We think that a larger breadth of companies will start to contribute to the profit pool and not just the big companies," he adds.
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