About Us

About Carnelian

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) 

Carnelian Values

Investment Philosophy

Our investment philosophy rests on two pillars

Growth

We look at growth in two baskets

Magic

Aims at capturing earnings growth and valuation rerating

  • Management/CEO change
  • Industry structure change
  • New growth catalyst
  • Product innovation

Compounder

Aims at capturing earnings growth over a long period of time

  • Large opportunity & sustainable moat
  • High ROE – efficient capital allocation
  • Robust Free cash flow generation
  • Growth & Governance

Risk

At Carnelian, we classify risks into 3 types

Permanent Loss Risk

Risk of permanent loss of capital or Total loss risk: risk of losing ~70-100% of capital​​

  • Disruption Prone Businesses
  • Quality of management
  • Quality of earnings/balance sheet
  • Product innovation
  • Controllable
  • Max Time

Volatility Risk

Risk of an investment temporarily going below the investment price

  • Macro factors
  • Geo-political / political issues
  • Liquidity
  • Temporary market dislocation
  • Uncontrollable
  • Min Time

Opportunity Loss Risk

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

  • Biases
  • Lack of knowledge
  • Controllable
  • Max Time
OUR EXPERTISE

Pitfalls we avoid

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:

  • Companies with aggressive accounting practices
  • Companies with high financial leverage
  • Companies with low tax incidence
OUR EXPERTISE

Forensic Expertise

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”.

  • C – Cash flow Analysis & Capital Allocation.
  • L – Liability Analysis
  • E – Earning Analysis,
  • A – Asset Quality Analysis
  • R – Related party transaction & Governance issues

INTERESTED TO GROW YOUR WEALTH?