The core investment objective of Carnelian Contra Portfolio Strategy is to generate superior risk-adjusted returns by leveraging a contrarian absolute return approach. The portfolio is structured to identify underappreciated opportunities arising from temporary dislocations, sector downturns, or value mismatches, with the aim to unlock significant upside potential.

Portfolio Snapshot:

• Multi-cap portfolio with 60% large cap bias
• Portfolio size: 20–25 stocks
• Benchmark: BSE 500 TRI
• Minimum Investment: ₹50 Lakhs
• Exit Load: 1% if redeemed within 1 year

Carnelian believes in investing in:

• Quality Growth at a Reasonable Price
• Risk diversification through forensic research

The philosophy revolves around buying good businesses experiencing temporary dislocation, which are fundamentally strong but mispriced due to cyclical, sectoral, or macroeconomic concerns. This includes special situations, deep value, and dividend-yielding stocks with a long-term growth outlook.

 Focus Areas:

• Structural growth stories
• Deep value stocks with high dividends
• Businesses facing temporary challenges
• Special situations like demergers, open offers, acquisitions

Carnelian adopts a top-down and bottom-up investment strategy that is sector-agnostic, aiming to capture alpha from multiple market inefficiencies. The portfolio focuses on:

• Structural Growth Stories with temporary dislocation (e.g., Infosys, Divis Labs)
• Deep Value Stocks trading at single-digit PE ratios (e.g., ITC, Coal India)
• Unfavorable Cycles with bounce-back potential (e.g., ER&D, Pharma)
• Special Situations like mergers and acquisitions (e.g., LTI + Mindtree, CG Power)

Key Portfolio Metrics:

• 12%–15%+ expected earnings CAGR
• ROE > 15%, Debt/Equity < 1.5
• Dividend yield: 3–4%
• Portfolio Beta: <1