Alchemy Smart Alpha Micro & Small cap

Alchemy Smart Alpha Micro and Small Cap is an equity investment strategy designed to generate long term risk adjusted returns by investing predominantly in micro cap and small cap companies and capturing growth opportunities as companies evolve from micro to small to mid cap businesses. The investment philosophy follows a Growth at Reasonable Price approach with a blend of quantitative and active management. The investment universe generally consists of the bottom 750 companies out of the top 1000 stocks by market capitalisation. Stock selection and portfolio construction follow the eQGP framework which evaluates companies based on environment, quality, growth and price parameters. For each company scores are assigned for quality, growth and price and the weights for these parameters are adjusted based on the environment score reflecting factors such as liquidity conditions, interest rate trends, macro growth trends and corporate profit trends. The weighted average score is calculated and the top 25 companies with the highest score are selected for the portfolio with continuous rebalancing. The portfolio typically consists of about 25 stocks and may extend up to about 50 stocks across sectors. Illustrative holdings include Multi Commodity Exchange of India Limited, Force Motors Limited, Sharda Cropchem Limited, DCB Bank Limited and Craftsman Automation Limited. Sector agnostic. Market cap combination of micro cap and small cap.