Jhunjhunwala Backed Alchemy Launches New AIF

Category III AIFs, which include hedge funds, use complex trading strategies and leverage to generate returns.

Alchemy, which was co-founded in 1999 by Hiren Ved, Rakesh Jhunjhunwala and others, is a portfolio management services (PMS) provider with assets of 7,500 crores. Jhunjhunwala, who died last month, had made a private equity investment in Alchemy but was not involved in its daily operations.

Alchemy Emerging Leaders of Tomorrow will be managed by Hiren Veda, Co-Founder, Director, CEO and CIO; and Maithili Balakrishnan, co-fund manager, Alchemy.

According to the PMS provider, the latest fund will invest in high quality companies with strong growth prospects benefiting from themes such as India’s rising discretionary spending, digitisation, global outsourcing, import substitution and improving manufacturing competitiveness. “In the last 5-7 years, the economy has taken a lot of pain, especially small and medium-sized companies, and also those that are largely domestic or manufacturing focused. In our view, if these companies survive the tough years, there is a significant growth opportunity,” says Hiren Veda.

He also feels that the trend of big companies getting bigger and organized sector players snatching market share from unorganized companies is already over. “We think a greater breadth of companies will start to contribute to the profit pool, not just large companies.”

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