Carnelian

Carnelian “The Shift” Strategy


Key Portfolio Attributes

Mr. Vikas Khemani

Inception Date: 1 Sept 2020

Number of Stocks : 18 - 20

Founder: Mr. Vikas Khemani

Portfolio Manager’s Name: Mr. Manoj Bahety

Portfolio Manager’s Qualification: CA, CFA(USA)

Portfolio Manager’s Experience:

Manoj has worked with marquee institutions– Edelweiss Securities, Morgan Stanley, RIL, HPCL. Prior to co-founding Carnelian, he has spent 11 years at Edelweiss Securities as Dy. Head – Institutional equity research, Head – forensic, thematic & mid cap research. He is known for his differentiated non consensus research and has pioneered forensic research, popularly known as “Analysis Beyond Consensus” (ABC research). ABC research has helped investors across the globe to take informed investment decisions based on true numbers instead of reported numbers thus avoiding “Pitfalls”- One of Carnelian’s virtues. Mid Cap research under his leadership has been credited for various multibagger ideas like VIP Industries, Supreme Industries, Balkrishna Industries, PI Industries, AIA Engineering, ICRA, Fag Bearing, SKF, Gulf Oil. He has represented various committees of CFA institute, which include Chairperson of India advocacy committee; member of USA based global CDPC committee. Manoj is a fitness freak and has been a regular marathon runner since last 8 years.

Investment Objective

Outperform the benchmark BSE 500 by 5-7% over a period of 3 – 5 years.

Investment Philosophy

Investment philosophy is designed to invest in structural growth businesses, run by great managements at fair valuation within Carnelian’s risk-reward framework.

Believe investing success is an outcome of making good decisions consistently over a long period of time. Good decisions are those which are made “objectively, free of any bias”, considering “probability of outcome” and factoring “risk reward”.

Puts utmost importance to capital protection, hence subject every company through Carnelian’s proprietary CLEAR forensic research framework before investing. Believe in being patient and long term.

Investment Strategy

“SHIFT Strategy” is a Multicap Portfolio with a focus on Mid & Small caps to tap niche manufacturing businesses that gain from global supply diversification, recent policy reforms, and cost competitiveness.

 India is set to benefit from the emergence of manufacturing-led opportunities due to Global supply chain diversification from China, Recent government reforms & initiatives, Cost competitiveness and  Strong domestic markets. Detailed research reveals multi-billion, multi-decade opportunities for manufacturing sectors in India.

This strategy aims to invest in the companies with niche capabilities and business leadership, expected to grow earnings > 20% (CAGR) over the investment horizon of 3-5 years across various sectors.

This strategy is sector agnostic and Multicap with a predominant focus on Mid and small caps.




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio7.1%10.6%11.3%8.3%----48.2%
BSE 5004.6%8.6%7.5%5.5%----28.7%



QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
LARSEN & TOUBRO LTD 5.91
LAURUS LABS LTD 5.56
RATNAMANI METALS & TUBES LTD 5.52
SYNGENE INTERNATIONAL LTD 4.93
BHARTI AIRTEL LTD 4.81
PHILLIPS CARBON BLACK LTD 4.74
MAYUR UNIQUOTERS LTD 4.72
TIMKEN INDIA LTD 4.63
JK PAPER LTD 4.50
HCL TECHNOLOGIES LTD 4.31
Top 10 Equity Holdings 49.63

Sector Allocation


Holding %
Consumer Product 0.40
Textile 3.11
Telecommunications 4.41
Paper 5.90
Engineering & Capital Goods 16.54
Auto Ancilliary 16.99
Chemical, API & CRAMS 17.33
Cash and Liquid 17.36
IT 17.96

Market Cap Allocation


Allocations %
Large Cap 15.0
Mid Cap 20.2
Small Cap 58.5
Cash 6.3


Do Not Simply Invest, Make Informed Decisions

WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

imageBook a call with our PMS AIF Specialists


From the Founders & Managers of Carnelian Capital PMS

What to expect from Carnelian Shift Strategy PMS?

Carnelian “SHIFT Strategy” is a long only, multi-cap thematic strategy designed to capture two structural decadal shifts presenting large wealth creation opportunity in

  • Manufacturing led by conducive regulatory and global environment (China +1/ Atma Nirbhar)
  • Tech evolution empowered by digital & SAAS platform with Indian companies at the forefront

This strategy is designed to invest in Manufacturing (2/3rd) and Technology(1/3rd) companies largely targeting mid and small cap companies with existing core competence/niche capability along with proven leadership, strong Balance Sheet, governance and return ratios through our proprietary MCO Framework. Our unique forensic framework CLEAR deep dives into all the aspects of risks thereby helping us avoid accidents of investing in companies with dubious intent and misplaced objects.

We foresee a ~USD 500 bn manufacturing opportunity and ~USD 150 bn digital opportunity over the next 5 years as a first order effect with second and third order effects yet to follow.

Who should invest in Carnelian Shift Strategy PMS?

This strategy is for those investors who seek to create returns based on the India strong manufacturing capabilities led by external environment and internal thrust and opportunities arising in the IT sector on the back of reasons highlighted above. Since this portfolio largely comprises of mid-small cap companies, one can generate good returns keeping in mind a higher risk as well.

Which is the best company through which an investor can invest in Carnelian “The Shift” 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 31 Aug 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Jun 22.




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