Marcellus Global Compounders Portfolio – GIFT CITY Domiciled PMS

Marcellus Global Compounders Portfolio (GCP) – a GIFT CITY Domiciled PMS is an investment strategy for Developed Public Equities (ex-India).

The investment objective of Marcellus Global Compounders Portfolio (GCP) – a GIFT CITY Domiciled PMS is to aim to generate long-term capital appreciation by investing in a curated selection of globally dominant companies. These companies exhibit sustainable competitive advantages, robust financial health, and potential for consistent growth. The fund focuses on developed market equities outside of India, leveraging thorough research and strategic portfolio construction to achieve superior returns over the long term.

The investment philosophy of Marcellus Global Compounders Portfolio (GCP) – a GIFT CITY Domiciled PMS revolves around the belief that a small group of companies globally possess the qualities necessary for sustained outperformance. These qualities include enduring moats, operational excellence, and aligned management interests with shareholders. GCP’s investment philosophy is grounded in the conviction that investing in such companies at reasonable valuations offers a compelling opportunity for wealth creation over time, driven by their ability to generate and grow free cash flow efficiently.

The investment strategy of Marcellus Global Compounders Portfolio (GCP) – a GIFT CITY Domiciled PMS employs a rigorous, bottom-up investment process that begins with a broad universe of stocks across North America and Europe. Through a meticulous screening process that includes fundamental analysis, forensic accounting, and independent third-party checks, the portfolio is narrowed down to 20-30 ‘Global Compounders’. These selected companies are expected to deliver 6%-9% alpha over the S&P 500’s long-term return, thanks to their superior Return on Invested Capital (ROIC), free cash flow growth, and earnings per share (EPS) growth.

The portfolio’s strategy is further refined by the TORQUE framework, which adjusts for macroeconomic and style-based factors to exploit market dislocations and enhance returns. This comprehensive strategy emphasizes quality, sustainability, and resilience, aiming for maximum value creation through efficient capital allocation and predictable cash flows.