Resonating with the qualities of Carnelian, Carnelian Asset Management & Advisors, a boutique investment management firm founded in 2019, by Vikas Khemani, Manoj Bahety, and Swati Khemani to pursue their passion towards investing in the capital markets. Carnelian’s mission is to help clients create and protect their wealth in the best optimal manner through investing in equities. Carnelian aspires to create a world class/global scale asset management platform known for its values and expertise.
In the Carnelian world, we 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”.
(Carnelian is a semi-precious stone which stands for motivation, endurance, leadership and courage; it is believed to bring about prosperity and protect from negative energies)
Capital Protection: Margin of safety precedes return
Excellence: Excellence precedes outcome
Law abiding: Compliance precedes rewards
Reputation risk: Reputation precedes rewards
Customer first: Customer interest precedes everything
Patience & trust: Patience precedes impulsiveness
We look at growth in two baskets
Aims at capturing earnings growth and valuation rerating
Aims at capturing earnings growth over a long period of time
At Carnelian, we classify risks into 3 types
Risk of permanent loss of capital or Total loss risk: risk of losing ~70-100% of capital
Risk of an investment temporarily going below the investment price
Under performance risk: Risk of investing into sub- optimal stocks/sectors/asset class due to various biases and lack of knowledge thereby missing superior returns
Learned Investment Guru Charlie Munger says, Invert, always invert. Tell me where I will die, I won’t go there.
Below illustrated are companies / managements we will not invest with:
We come from Marwari families where our forefathers are used to seeing “where is our profit vs what is our profit”.
Our unique forensic framework deep dives into the following before investing, what we call “CLEAR”.
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