Alchemy Ascent

Alchemy Ascent is a high risk high return oriented equity strategy designed to generate long term risk adjusted returns through a data intensive research driven investment approach. The strategy filters the investible universe from the top 500 companies by market capitalisation and applies a systematic algorithm based framework to identify companies using parameters related to growth, valuation, quality of earnings, balance sheet health and market cycle behaviour. The investment process evaluates factors such as revenue growth, income and cash flow generation, margins, return on capital, price to earnings, price to cash flow, working capital efficiency, free cash flow, debt profile, share capital structure and stock performance relative to index. Portfolio creation is based on ranking stocks through a quantitative algorithm and allocating capital based on score and attributes, with typical allocation of about 3 percent to 5 percent per stock and in exceptional cases up to about 10 percent. The portfolio generally consists of up to about 35 stocks diversified across sectors with active monitoring and replacement of stocks when parameters deteriorate. Illustrative holdings include Eicher Motors Limited, Muthoot Finance Limited, Anand Rathi Wealth Limited, Syrma SGS Technology Limited, eClerx Services Limited, Kajaria Ceramics Limited, Apar Industries Limited and HDFC Asset Management Company Limited. Sector agnostic. Market cap combination of large cap, mid cap and small cap.