MeritorQ: CAPE Fear
In this newsletter, we look at current market valuation levels implied by the cyclically adjusted price to earnings ratio (CAPE). Going by past history, our analysis suggests that at current CAPE levels, Indian investors should be more cautious on forward-looking market returns. Irrespective of market valuation, we believe MeritorQ’s low-risk approach of picking profitable, low-debt […]
Global Compounders Portfolio: Update on Favourable Policy/Regulatory Change
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. This portfolio is agnostic to market cap or sectors, and targets to deliver excess return through different periods in the cycle. As India catapults into the most […]
Portfolio Performance and Update on Fundamentals – July 2024
Note: For all strategies except GCP, performance data is net of annual performance fees charged for client accounts whose account anniversary date falls up to the last date of this performance period. Since fixed fees and expenses are charged on a quarterly basis, […]
Prudent Corporate: The tollbooth for Indian SIPs
Prudent Corporate, India’s third-largest mutual fund distributor, has grown revenues and EPS by 29% and 46% respectively over FY19-24. During this period, Prudent has risen from being the 7th largest distributor to being the 3rd largest in FY24, surpassing giants such as HDFC Bank and ICICI Bank in terms of mutual fund commissions earned. Prudent’s success can […]
Portfolio performance and Update on Fundamentals – June 2024
*For relative performance of particular Investment Approach to other Portfolio Managers within the selected strategy, please refer https://www.apmiindia.org/apmi/WSIAConsolidateReport.htm?action=showReportMenu Under PMS Provider Name please select Marcellus Investment Managers Private Limited and select your Investment Approach Name for viewing the stated disclosure Consistent Compounders Portfolio (CCP) Businesses with strong competitive advantages (and hence high ROCEs), can be categorized into […]
Rising Giants: Spotlighting Eureka Forbes
In this month’s newsletter, we delve deeper into Eureka Forbes Limited (EFL) one of the new additions to the portfolio. We see several earnings growth levers for EFL over the next 5 years: (a) Increase in the water purifiers (WP) category penetration backed by improved tap water supply, and initiatives taken by the WP companies […]
CCP’s Amplified Exposure to ‘Enterprising Compounders’
Businesses with strong competitive advantages (and hence high ROCEs), can be categorized into different types based on their capital allocation decisions. Amongst these, the most enterprising ones (the ‘enterprising compounders’) are those which reinvest capital not only to strengthen and evolve their core business, but also to scale up new businesses consistently. Shareholder returns from such businesses […]
Spotlighting Eureka Forbes
In this month’s newsletter, we delve deeper into Eureka Forbes Limited (EFL) one of the new additions to the portfolio. We see several earnings growth levers for EFL over the next 5 years: (a) Increase in the water purifiers (WP) category penetration backed by improved tap water supply, and initiatives taken by the WP companies […]
Performance of Marcellus PMS products vis-à-vis respective benchmarks as of 31st May 24
*For relative performance of particular Investment Approach to other Portfolio Managers within the selected strategy, please refer https://www.apmiindia.org/apmi/WSIAConsolidateReport.htm?action=showReportMenu Under PMS Provider Name please select Marcellus Investment Managers Private Limited and select your Investment Approach Name for viewing the stated disclosure Consistent Compounders Portfolio (CCP) Marcellus’ CCP Portfolio is almost entirely exposed to five sectors of the […]
Marcellus Portfolio Performance and Update on Fundamentals – April 2024
*For relative performance of particular Investment Approach to other Portfolio Managers within the selected strategy, please refer https://www.apmiindia.org/apmi/WSIAConsolidateReport.htm?action=showReportMenu Under PMS Provider Name please select Marcellus Investment Managers Private Limited and select your Investment Approach Name for viewing the stated disclosure Consistent Compounders Portfolio (CCP) The investment philosophy at Marcellus’ CCP portfolio remains unchanged around portfolio […]
Global Compounders Portfolio: The Four Pillars of American Capitalism
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. A large part of our portfolio comprises of American firms, and for good reason. Over the last 30 years, US equities have demonstrated exceptional ability to generate […]
MeritorQ: Profiting from the Dislocation in Indian Megacaps
Although India’s 20 most profitable listed companies (the ‘Megacaps’) account for around 50% of the profits generated by the BSE 500 companies, these Megacaps account for just 34% of the BSE500’s market cap (down from 41% a decade ago and 45% nearly two decades ago). Indian retail investors’ fascination with small caps seems to be […]
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