Shanghai Disneyland Sells Out Of Tickets For Post-Shutdown Reopening
Just earlier this week, the FT’s Alphaville wrote about ‘Introducing, the Disney Park Indicator’ as ‘the ultimate economic indicator of whether the world has returned to its 2019 “normality”’ – citing that ‘a visit to Disney, and in particular Florida’s Disney World, requires that a consumer does everything they’re not doing right now’. Going to Disney is an expensive affair (avg […]
The Landscape Has Changed For Traditional Value Investing
Bruce Greenwald is a professor at Columbia University’s Graduate School of Business and the author of the books Value Investing: from Graham to Buffett and Beyond and Competition Demystified: A Radically Simplified Approach to Business Strategy. The blog cites a recent podcast with him where he highlights why value investing as it has been traditionally understood (buying low […]
Extreme returns
Here’s one piece which highlights the merits of active investing and yet shows why it is so hard to generate alpha. Baillie Gifford, a Scottish investment management firm pursues strong collaborative ties with the academia to stay ahead of the curve. In one such piece, James Anderson, a partner at BG, writes about research from […]
Naseeruddin Shah: ‘Irrfan’s legacy is like a constellation of stars for everyactor to take inspiration from’
For those who aspire to excellence, Naseeruddin Shah has long set the benchmark in Indian cinema. Over the past decade however many of us were left spellbound by the acting of a modern master, Irrfan Khan. From his breakthrough movie “The Warrior” (2001) to seeing his spine chilling portrayal of Maqbool in Vishal Bhardwaj’s movie […]
Cox and Kings Dossier – Parts 1 & 2: Audit uncovers siphoning of crores, fudging of records and bogus sales
Last week, we highlighted a piece in The Economist which highlighted that the ongoing economic crisis will bring to the fore a decade’s worth of accounting fraud (see https://www.economist.com/business/2020/04/18/the-economic-crisis-will-expose-a-decades-worth-of-corporate-fraud). We also highlighted one of our older blogs where we had laid out the link between liquidity crunches and accounting fraud – see https://marcellus.in/blogs/accounting-fraud-and-liquidity-crunches-are-bedfellows/. Given that accounting fraud […]
Black swans, Black crows and Fund lies
In our conversations with investors, we find the emphasis is largely around returns and very little attention is paid to risk. In this piece, Ajit Dayal, who is not one to pull his punches, especially when it comes to the mutual fund industry, brings out the perils of not using risk-adjusted returns in the context […]
Little Champs Punch Hard When It Matters
The historical underperformance over extended periods (2005-19 and 2005-17) of the BSE SmallCap index relative to the Nifty/BSE500 despite higher volatility/drawdowns highlights that the odds are stacked against small cap investors unless they invest in clean well-run small cap companies. We follow a robust investment process combining our quantitative frameworks and qualitative diligence to shortlist […]
How to tap into creativity during lockdown
It is said that crises bring the best out of humanity. Whilst the world is looking forward to many innovations coming up on the back of this lockdown, this applies equally to the individual level itself. Especially in the creative field, social distancing actually isn’t such a bad deal. Alone time can give people the […]
The World Is Still Producing More Oil Than It Needs. Why?
As humanity’s love for automobiles grew, in turn pushing up the demand and therefore price of oil, supply side response came from offshore drilling to fracking of shale oil. That’s intuitively expected. However, when the world went into lockdown and demand for oil fell taking down prices to even negative territory as there wasn’t enough […]
Closing schools for covid-19 does lifelong harm and widens inequality
The lives vs livelihood debate has become louder through the lockdown across the world with increasing calls to ‘reopen the economy’. But much of these calls have been towards helping the economically less fortunate to get back to a means of livelihood. In other cases, helping small businesses which don’t have the wherewithal to survive […]
The staggering rise and incredible fall of a billionaire
Whilst all of us have read about what happened in Café Coffee Day or Gitanjali or Amtek Auto or DHFL or IL&FS, it is rare to read about an accounting blowup in the NRI community let alone a blowup which makes local Indian promoters look like babes playing in the wood. This ET story profiles […]
The economic crisis will expose a decade’s worth of corporate fraud
Every single day in Marcellus we tell our clients that at least 80% of Indian companies have suspect accounts. Further, as we have explained in this blog – https://marcellus.in/blogs/accounting-fraud-and-liquidity-crunches-are-bedfellows/ – in a crisis may of these companies find that their time is up. In the article, the Economist makes a similar point for the world at large: “Booms […]
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