Marcellus Rising Giants PMS


Key Portfolio Attributes

Mr. Saurabh Mukherjea
Mr. Ashvin Shetty

Inception Date: 13 August 2021

Number of Stocks: 15 - 20

Founder & CEO: Saurabh Mukherjea

Portfolio Manager's Name: Ashvin Shetty

Portfolio Manager's Qualification: B.Com from NMIMS, Mumbai. CA & CFA.

Portfolio Manager's Experience: 10+ years in Equity Research. He led the coverage on automobile sector at Ambit Capital from 2010 to 2017. He was ranked in Starmine Analyst Awards 2013 and 2016 for his stock picking abilities during this stint. He thereafter worked as a senior analyst for Ambit’s mid and small-cap portfolio management services till November 2018.

Investment Objective

High quality mid-sized companies have been amongst the largest wealth creators in Indian equities and Marcellus Rising Giants Portfolio is a portfolio focused in this space of quality mid caps companies in India in the USD 500m – 10 bn market cap range.

Investment Strategy

Marcellus Rising Giants PMS is a Concentrated 15-stock portfolios with the top 4 stocks accounting for around 40% of the portfolio. The next 5 (sizing ranks 5-10) stocks in Marcellus Rising Giants account for ~30% of the portfolio. Sizing ranks 11-15 account for the final 29% of the portfolio. Sizing in Marcellus Rising Giants is based on Longevity framework and forward EPS expectation of analysts.

 

For mid cap stock selection, by Marcellus Rising Giants, the basis of scoring is on ‘Longevity’ (moats, lethargy, succession planning) and EPS growth prospects. And for For small caps stock selection Marcellus Rising Giants follows a ‘Discovery’ framework i.e. growth accompanied by improving profitability and improving FCF thanks to barriers to entry.

 

Seven out of 15 Stocks in Marcellus Rising Giants are Aavas Financiers, Page Industries, L&T Technology Services, Info Edge, Dr Lal Path Labs, GMM pfaudler, Relaxo Footware.

Investment Philosophy

Marcellus Rising Giants PMS philosophy has its roots in the Marcellus’ Asset Managers Core Investment philosophy : –

Clean accounts and governance.

Strongly moated dominant companies in niche segments not yet well discovered by the market participants.

Strong track record of capital allocation with high reinvestment in the core business and continuous focus on adjacencies for growth.

 




Performance Table #


Trailing Returns (%) 1m return 3m return 6m return 1y return 2y return 3y return 5y return 10y return Since inception return
Portfolio5.9%9.8%0.8%-11.5%
BSE 5004.8%9.2%8.5%6.1%



Portfolio Holdings


Holding %
GMM Pfaudler Ltd. 8.00
Dr. Lal Pathlabs Ltd. 8.00
Page Industries Ltd. 8.00
Aavas Financiers Ltd. 8.00
Astral Poly Technik Ltd. 7.00
Top 5 Equity Holdings 39.00

Sector Allocation


Holding %
Cash 1.00
IT Services 6.00
Building Materials 6.50
Auto & Auto Components 7.00
Health Care 8.00
Chemicals 12.50
Industrials 14.00
Consumer Discretionary 20.00
BFSI (including Info Edge) 25.00

Market Cap Allocation


Allocations %
Large Cap 18.0
Mid Cap 48.0
Small Cap 31.0
Cash 5.0


Do Not Simply Invest, Make Informed Decisions

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’ Rising Giants PMS?

This PMS intends to invest primarily in high quality mid-sized companies (less than INR75,000 crores market-capitalisation, predominantly in the INR 7,000 crores – INR 75,000 crores range) with: 1) Well moated dominant franchises in niche segments; 2) A track record of prudent capital allocation with high reinvestment in the core business and continuous focus on adjacencies for growth; and 3) Clean accounts and impeccable corporate governance. Besides the earnings growth from market share consolidation in favour of Rising Giants companies and capital allocation initiatives of these companies, we also expect to benefit from free cash compounding as these operating profits of these companies grow faster than reinvestments (working capital and fixed assets investments).

Who should invest in this PMS?

An investor with a time horizon of 3-5 years who want to invest in high quality mid-cap companies with an expected long-term compounding of 20-25% should invest in this PMS

Which is the best company through which an investor can invest in Marcellus Rising Giants PMS?

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 Aug 2022. Returns up to 1 Year are absolute, above 1 Year are CAGR.




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