Consistent Compounders

CCP’s Earnings Have Compounded at 18% Per Annum

Marcellus’ CCP Portfolio has delivered 17.8% EPS CAGR over FY19-24 (computed using reported earnings of annual rolling portfolio cohorts), which is the primary driver of the portfolio’s 17.4% (pre-fees) portfolio performance over FY19-24 (15.35% net of fees and expenses). The changes made to the portfolio over time have enhanced its earnings profile. Additionally, in early […]

Feb 18, 2025 . 7 MIN READ
Consistent Compounders

Portfolio Performance and Update on Fundamentals – January 2025

Note: For all strategies except GCP, Performance data shown is net of fixed fees and expenses charged till December 31st , 2024 and is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary/performance calculation date falls upto the last date of this performance period. Since, for Little Champs Portfolio, […]

Feb 13, 2025 . 15 MIN READ
Consistent Compounders

MeritorQ: Rebalancing Bonus

We have previously highlighted in  MeritorQ: The Moneyball of Quality Investing the key reasons to rebalance in the context of MeritorQ’s investment rules. In this newsletter, we delve into how rebalancing between uncorrelated equity styles like Quality and Value, which forms the basis for selecting stocks in MeritorQ, further enhances MeritorQ’s returns. We call this the […]

Jan 15, 2025 . 4 MIN READ
Consistent Compounders

Portfolio Performance and Update on Fundamentals – December 2024

Note: For all strategies except GCP, Performance data shown is net of fixed fees and expenses charged till December 31st, 2024 and is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary/performance calculation date falls upto the last date of this performance period. Since, for Little Champs Portfolio, […]

Jan 13, 2025 . 16 MIN READ
Consistent Compounders

Global Compounders Portfolio: Maintaining Discipline amidst Pockets of Excess

Marcellus’ Global Compounders Portfolio (GCP) strategically invests in 25-30 deeply moated global companies aligned with megatrends, fostering a consistent mid to high teens compounding of free cash flow/earnings. In this newsletter, we present our perspective on valuations in the US market given that we do see signs of excess in S&P 500 valuations. However, these […]

Dec 19, 2024 . 5 MIN READ
Consistent Compounders

Slowing Growth + Rising Risks = Quality Lenders finally Outperforming

Loan growth for the banking sector has slowed down to 12% YOY from a peak of 16% and slippages for the higher risk retail lending segments are up anywhere between 2x – 6x vs FY24 levels. The increase in NPAs is a result of: (i) oversupply of credit in the post- Covid retail lending frenzy, […]

Dec 14, 2024 . 10 MIN READ
Consistent Compounders

Portfolio performance and update on Fundamentals – November 2024

Note: For all strategies except GCP, Performance data shown is net of fixed fees and expenses charged till September 30th, 2024 and is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary/performance calculation date falls upto the last date of this performance period. Since, for Little Champs Portfolio, […]

Dec 12, 2024 . 14 MIN READ
Consistent Compounders

‘Capitalism Without Capital’ Fuels CCP

Capitalism without capital, i.e., the growing prominence of companies who are plays on intellectual rather than physical assets, is now increasingly prominent in India. Marcellus’ Consistent Compounder Portfolio (CCP) is actively participating in this theme. Over the past 5 years, profits of companies in our current CCP portfolio have grown at a significantly faster pace […]

Nov 09, 2024 . 16 MIN READ
Consistent Compounders

Portfolio performance and update on fundamentals

Note: For all strategies except GCP, Performance data shown is net of fixed fees and expenses charged till September 30th, 2024 and is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary/performance calculation date falls upto the last date of this performance period. Since, for Little Champs Portfolio, […]

Nov 08, 2024 . 17 MIN READ
Consistent Compounders

Global Compounders Portfolio: N.I.M.B.Y. Investing! – Turning Waste into Wealth

Marcellus’ Global Compounders Portfolio (GCP) strategically invests in 25-30 deeply moated global companies aligned with megatrends, fostering a consistent mid to high teens compounding of free cash flow/earnings. Investing globally, particularly in the US, is often equated with technology companies. While the US is home to iconic tech giants, exceptional value creation has occurred across […]

Oct 30, 2024 . 12 MIN READ
Consistent Compounders

Portfolio Performance and Update on Fundamentals – September 2024

Consistent Compounders Portfolio (CCP) Performance of Marcellus’ CCP portfolio has turned a corner in absolute returns over the last 18 months (31% CAGR) and in relative returns over the last six months (20.78% for CCP vs 16.58% for Nifty50 TRI). This is attributed to both the upgrades made to our portfolio construction approach as well […]

Oct 09, 2024 . 10 MIN READ
Consistent Compounders

Rising Giants: Spotlighting Godrej Agrovet

This month we delve deeper into Godrej Agrovet Limited (GAVL) which we added to the Rising Giants PMS portfolio earlier this year. GAVL is a diversified agri-focussed company present across animal feed, palm oil, crop protection, dairy and poultry businesses. The Company witnessed muted earnings growth over FY18-23 due to volatility in commodity prices (inputs as well […]

Oct 01, 2024 . 6 MIN READ

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