Carnelian Bharat Amritkaal Fund

Question 1

About AMC

Answer 1

About Carnelian AMC
Carnelian is a boutique investment management firm founded in April 2019 by Vikas Khemani, Manoj Bahety and Swati Khemani.
It is 100% founder owned, reinforcing trust and value for all stakeholders.
Carnelian has a team of 52 professionals. It has a strong investment team comprising of 9 research analysts, covering different sectors.
It currently manages ~ Rs 8,045 Cr of AUM across PMS and Cat III AIFs.

Key Investment Team
Vikas Khemani (CIO):
Vikas has 27 years of capital markets experience, most recently as the CEO of Edelweiss Securities Ltd, where he spent 17 years incubating & building several businesses to leadership including Institutional Equities business and Equity Research.

Manoj Bahety (Fund Manager):
Manoj is a Chartered Accountant & CFA Charter holder (USA), having ~27 years of diverse financial services experience with marquee institutions.
Most recently, he has served at Edelweiss Securities as Dy. Head - Institutional equity research, Head - forensic, thematic & mid cap research.
He has pioneered differentiated forensic research, popularly known as “Analysis Beyond Consensus” (ABC research).

Question 2

The Strategy

Answer 2

Investment Strategy
The strategy will focus on companies benefitting from mega trends arising during India’s “Amritkaal” period (PM’s 25 years vision for a new India by 2047).
Focus sectors - Banking & Financials, Manufacturing, Services Exports, Consumption and Infrastructure.
The strategy has identified the following emerging mega trends which will help in shaping India’s economy.

1. Youngest & largest working population globally
2. Consumption boom
3. Global manufacturing hub
4. Services outsourcing
5. Digital hub of the world
6. Global influencer / Knowledge guru
7. Sustainability

Investment Framework
Quality Business and Management
Growth
Magic Basket - Accelerated earnings growth & valuation re-rating
Compounder Basket - Sustainable earnings growth
Reasonable Valuation in relation to growth prospects
Forensic Analysis - CLEAR framework
C – Cash Flow Analysis
L – Liability Analysis
E – Earnings Quality Analysis
A – Asset Quality Analysis
R – Related Party and governance issues

Question 3

Portfolio

Answer 3

1. Dabur India : 6.3%
2. Container Corporation of India : 5.9%
3. Qutone Ceramic^ - 5.1%
4. Tech Mahindra - 4.7%
5. SRF - 4.7%
6. LTI Mindtree - 4.6%
7. AB Capital - 4.4%
8. Max Financial Services - 4%
9. LT Foods - 3.7%
10. Technocraft Indistries - 3.6%

Question 4

Sectorwise & Market Cap Break Up

Answer 4

Sector Break Up
1. Manufacturing : 30.7%
2. Consumption : 20.2%
3. BFSI : 19%
4. Services : 13.9%
5. Infrastructure : 8.5%

Market Cap Break Up

Large Cap - 24.8%
Mid Cap - 26.2%
Small Cap - 41.3%
Cash : 7%

Question 5

Portfolio Facts

Answer 5

No of Stocks 27
Weighted Average Market Cap (in Rs. Cr.) 1,00,246
Median Market Cap (in Rs. Cr.) 23,677
AUM (in Rs. Cr.) ~2,000
AMC AUM (in Rs. Cr.) (PMS+AIF) ~8,045
Risk Parameters (SI) Portfolio S&P BSE 500
Beta 0.6 1.0
Standard Deviation 10.9% 14.8%
Sharpe Ratio 4.1 2.8

Nature of the Scheme Open-ended Category III AIF
Fund Benchmark S&P BSE 500
Minimum Commitment Amount Rs 5 Crore
Minimum Add-on Investment Amount Rs 50 lakhs (Top-up in multiples of Rs 50 lakhs)
Initial Contribution Initial Drawdown - 30%, balance in two equal tranches over next one year.
NRI Eligibility NRIs can invest on a case-to-case basis and in consultation with fund house. US and Canada based investors can invest provided they are in India.
Management Fee structure* Share Class
A1 : 2.25%

Exit Load 2% if redeemed within 12 months of last date of allotment of units