Marcellus Kings of Capital Portfolio ( KCP )


Key Portfolio Attributes

Mr. Saurabh Mukherjea
Mr. Tej Shah

Inception Date: July 2020

Category: Thematic (Financials sector)

Founder & CEO: Saurabh Mukherjea

Portfolio Manager: Tej Shah

Portfolio Manager's Qualification: Tej is a Chartered Accountant and has cleared all levels of the CFA exams. He holds a B.Com degree from Ahmedabad University.

Portfolio Manager's Experience: Prior to joining Marcellus, Mr. Tej worked at Ambit Capital & Mayfield.

Investment Objective

MARCELLUS Kings of Capital is a quality portfolio that invests in a portfolio of financial services companies beyond just the usual lenders and build a portfolio of niche financial services like insurance, broking, AMCs, wealth management companies etc.

The key objective of Marcellus Kings of Capital PMS strategy is to own a portfolio of 10 to 14 high quality Financial companies (banks, NBFCs, life insurers, general insurers, asset managers, brokers) that have good corporate governance, prudent capital allocation and high barriers to entry.

Portfolio Strategy

Marcellus Kings of Capital  (Marcellus KCP PMS) is a focused and a concentrated fund with upto 15 stocks in its portfolio. The aim of Marcellus KCP is to construct a multi-cap financial services-focused portfolio with moated and resilient businesses. Marcellus Kings of Capital will have only those companies that have a clean balance sheet and high corporate governance as Marcellus proprietary forensic filtering eliminates businesses that have poor accounting quality.

The non-lending part of the Marcellus Kings of Capital portfolio adds resilience to the portfolio during times of stress because insurers have a lower beta than lending businesses while asset management and brokerage businesses do not take any balance sheet risks.




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio-3.4%-6.4%-9.9%-6.5%11.6%
Bank Nifty 50-1.7%-2.0%-0.6%-0.1%29.3%



QRC Report Card *




VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS

Portfolio Holdings


Holding %
Aavas Financiers Ltd. 8.50
Axis Bank Ltd. 8.00
Bajaj Finance Ltd. 14.50
Cholamandalam Investment and Finance Company Ltd. 8.00
Home First Finance Company India Ltd 5.00
Top 3 Equity Holdings 40.50

Sector Allocation


Holding %

Market Cap Allocation


Allocations %
Large Cap 73.5
Mid Cap 13.0
Small Cap 13.0
Cash 1.0


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WISH TO MAKE INFORMED INVESTMENTS FOR LONG TERM WEALTH CREATION

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From the Founders & Managers of Marcellus Investment Managers PMS

What to expect from Marcellus’ Kings of Capital PMS?

Over the past decade, India’s Financial Services sector has been hammered by demonetisation, the ILFS crisis, Yes Bank’s collapse and the Covid crisis putting extreme pressure on weak lenders. However, history shows that investing in high quality financial stocks during a crisis proves to be highly rewarding. The key objective of our “Kings of Capital” strategy is to own a portfolio of 10 to 14 high quality Financial companies (banks, NBFCs, life insurers, general insurers, asset managers, brokers) that have good corporate governance, prudent capital allocation and high barriers to entry. These companies have grown at healthy growth rates of 20%+ despite macro headwinds over the past five years, we expect these companies to grow at 20-25% supported by market share gains over the next five years.

Who should invest in this PMS?

Clients with a time horizon of at least 3 to 5 years who want to invest in high quality financial companies with an expected long-term compounding of 20-25% should invest in this PMS. Any crisis sees the stock prices of financial companies go through a steep correction due to (i) reduction in growth rates (ii) increase in NPAs and (iii) compression of valuation multiples. As the crisis recedes, high quality lenders are able to improve growth rates on the back of market share gains, asset quality normalises and resultantly valuation multiples also normalise. Kings of Capital is therefore an ideal product for investors who want to benefit from these tailwinds as we emerge from the Covid crisis.

Which is the best company through which an investor can invest in Marcellus Kings of Capital Portfolio ( KCP )?

We recommend PMS AIF WORLD, because, it is one unique platform that offers real knowledge driven investing with their highly meaningful data, reports, and content that is written very well. PMS AIF World is a team of highly articulate, educated, and experienced people.



Disclaimer

#Returns as of 31 May 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.

*QRC Report Card data is updated quarterly. Current data is as of Mar 22.




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