Carnelian Capital Compounder Strategy

Alpha (1Y)	Beta (1Y)	Standard Deviation (1Y)	% of +ve Months (SI)
15.34%	0.96	12.06%	65%

Key Portfolio Attributes

Mr. Vikas Khemani

Inception Date: 15 May 2019

Number of Stocks : 20 -25

Founder: Mr. Vikas Khemani

Portfolio Manager’s Name: Mr. Manoj Bahety

Portfolio Manager’s Qualification: Manoj Bahety - CA, CFA(USA) and Sachin Jain – CA

Portfolio Manager’s Experience: Manoj Bahety - ~20 years and Sachin Jain - ~18years

Investment Objective

The investment objective of the Carnelian Capital Compounder Fund-1 is to generate long-term sustainable alpha across market cycles through

• Focus on fundamental driven growth investing

• Bottom up stock picking using our unique “PIU Framework”

• Long term, multi-cap, sector agnostic investing

Investment Universe – Indian listed equities. We constantly scan our universe to find ideas

which meets our MCO framework (explained later), Internal rating scorecard – PIU & Risk framework.

Investment Philosophy

The Carnelian Capital Compounder Strategy PMS adheres to a philosophy that attributes investing success to the ability to make well-judged decisions consistently over an extended period. These decisions are characterized by objectivity, a lack of bias, a thorough consideration of probable outcomes, and an assessment of risk-reward scenarios.

Their approach includes investing in high-growth businesses led by superior management teams and acquired at fair valuations. They recognize that a margin of safety is not solely dependent on the price; it also comes from meticulous research and analysis. Moreover, they assert that genuine investment success requires original conviction rather than relying on the beliefs or strategies of others.

The strategy embraces a contrarian stance when the risk-reward dynamics are particularly favorable, as following the crowd often leads to average returns. Patience and a long-term view are central to their philosophy, likening investing to the slow and steady growth of grass. They prioritize certain returns over immediate gains and are comfortable holding cash if no compelling investment opportunities are present.

Investment Strategy

• Long only, multi-cap and sector agnostic strategy

• Aim to generate sustainable alpha & compound capital through our unique MCO framework

– unique & unconventional blend of companies – Magic (accelerated growth), Compounder (stable growth) & Opportunistic

• Focused on fundamental driven growth investing; bottom up stock picking

• Unique forensic framework “CLEAR” help avoid accidents

• Portfolio of carefully selected 20-25 stock

Performance Table #

Trailing Returns (%)	1m return	3m return	6m return	1y return	2y return	3y return	5y return	10y return	Since inception return
Carnelian Capital Compounder Strategy	7.10%	15.20%	23.70%	50.70%	40.10%	21.50%	22.50%	-	22.40%
BSE 500 TRI	7.10%	11.70%	16.70%	38.30%	30.90%	19.90%	20.00%	-	20.60%

QRC Report Card *

Strategy	Category	Fund Manager	Date of Inception	Age Of PMS	Corpus (in Cr, approx)	Benchmark	Returns SI (CAGR)	Stocks In Portfolio	Sectors In Portfolio
Carnelian Capital Compounder Strategy	Multi Cap	Mr. Manoj Bahety and Mr. Sachin Jain	15 May 2019	5Y 2M	-	BSE 500 TRI	22.40%	20-25	9

		Portfolio Quality (Q)			Portfolio Risk (R)			Portfolio Consistency (C)
Index	Category Alpha (1Y)	Relative Alpha (1Y)	% of +ve Months (Fund Data)	Alpha (1Y)	Beta (1Y)	Standard Deviation (1Y) (Fund Data)	Sharpe Ratio (1Y) (Fund Data)	Alpha (SI)	Information Ratio (SI)	Consistency Ratio %
Nifty 50	15.04%	10.82%	65%	25.86%	0.80	12.06%	4.20	6.08%	0.66	61.67 %
Nifty 500	7.67%	7.67%		15.34%	0.96			3.77%	0.49	58.33 %
Nifty Midcap 100	-9.30%	3.71%		-5.59%	0.78			-2.77%	-0.30	51.67 %
Nifty Smallcap 100	-15.20%	-0.1%		-15.30%	0.64			0.90%	0.07	53.33 %

VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings

Holding	%
Aditya Birla Capital Ltd	8.10
Senco Gold Ltd	5.70
Tata Motors Ltd - DVR	5.10
Punjab National Bank	5.00
Reliance Industries Ltd	5.00
ICICI Bank Ltd	4.80
Laurus Labs Ltd	4.70
Yatharth Hospital and Trauma Care Services Ltd.	4.70
Larsen & Toubro Ltd	4.30
The Jammu & Kashmir Bank Ltd	4.20

Sector Allocation

Holding	%
BFSI - Credit	36.40
IT	15.70
Pharma, API & Chemical	11.70
Auto & Auto Ancillary	9.50
Engineering & Capital Goods	9.40
Jewellary	6.00
Diversified	4.90
Hospital	4.60
Cash and Liquid	1.90

Market Cap Allocation

Allocations	%
Large Cap	42.30
Mid Cap	27.60
Small Cap	28.30
Cash	1.80

Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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From the Founders & Managers of Carnelian Capital PMS

What to expect from Carnelian Capital Compounder Strategy PMS?

The Indian economy is poised to grow from USD 2.8tn to USD 5tn over next 5 years. India’s focus on becoming self-reliant in critical sectors, supply chain diversification by global players (China+1), India’s improved cost competitiveness and huge domestic demand are key catalysts for this big opportunity that lies ahead of us thereby propelling growth across sectors. Besides India is the only unique market offering a strong large domestic market along with huge export opportunity too.

Carnelian Capital Compounder Strategy is a long only, multi-cap, sector agnostic portfolio designed to capture the growth in the Indian economy and deliver superior returns across market cycles through our proprietary MCO framework, which offers a Unique & unconventional blend of companies Magic (accelerated growth), Compounder (stable growth) & Opportunistic. The portfolio represents a fair blend of defensive yet participative sectors like IT, Pharma, BFSI (blend of credit and non-credit) and Consumer durables.

Who should invest in Carnelian Capital Compounder Strategy PMS?

This strategy is suitable for all equity investors who believe in the India growth story over the next 3-5 years on the back of reasons highlighted above. This strategy, we believe will generate superior returns across market cycles with moderate risk – about 50% of the portfolio comprises of large caps, 30% mid-caps and 20% small caps.

Which is the best company through which an investor can invest in Carnelian Capital Compounder Strategy?

We recommend PMS AIF WORLD, because, it is one unique platform that offers real knowledge driven investing with their highly meaningful data, reports, and content that is written very well. PMS AIF World is a team of highly articulate, educated, and experienced people.

Disclaimer

#Returns as of 30 June 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 24.

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