Marcellus MeritorQ PMS Newsletters

Strategy Series

Our articles specific to the six investment strategies we offer. Whether you invest with us or are looking to invest, these
articles can you give you an insight into why we make the decisions we make.

MeritorQ PMS

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 […]

MeritorQ PMS MAR 15 . 9 MIN READ

MeritorQ: A Deeper In-Depth Look At MeritorQ’s Forensic Model

MeritorQ PMS FEB 13 . 11 MIN READ

MeritorQ: Forensic Accounting Using Quant Methods Boosts Returns

MeritorQ PMS JAN 11 . 10 MIN READ

MeritorQ: The Power of Checklists

MeritorQ PMS

MeritorQ: CAPE Fear

Sep 07 . 5 MIN READ READ MORE

MeritorQ PMS

MeritorQ: A Deeper In-Depth Look At MeritorQ’s Forensic Model

MeritorQ uses forensic ratios to evaluate the accounting quality of Indian companies. As we highlighted in our February newsletter – Forensic Accounting Using Quant Methods Boosts Returns – our accounting checks can identify accounting frauds well in advance of the actual drawdown event. Using the specific examples of two companies in this newsletter, we discuss how accounting […]

Mar 15 . 9 MIN READ READ MORE

MeritorQ PMS

MeritorQ: Forensic Accounting Using Quant Methods Boosts Returns

Over the past 16 years, the average return of market cap weighted BSE 500 index has been 10.3% p.a. on a 3-year rolling basis. But the story changes completely when we differentiate between the index constituents based on their accounting quality. There is a clear deterioration in returns and a rapid increase in risk and […]

Feb 13 . 11 MIN READ READ MORE

MeritorQ PMS

MeritorQ: The Power of Checklists

Most of us have used a checklist at some point. Humans need checklists because most of us have imperfect recall. Checklists provide a cognitive safety net. They prevent us from having to suffer due to our flaws —flaws of memory, attention, and thoroughness. Checklists have been found to be effective in performing complex tasks in varied […]

Jan 11 . 10 MIN READ READ MORE

For more content on our strategy, visit the archives

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The Gold List

The best collections from the Marcellus Library

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Marcellus Consistent Compounder Portfolio Webinar on Amidst high input cost inflation, pricing power protects margins & market share

Amidst high input cost inflation, pricing power protects margins & market share of CCPs

Mar 10, 2022 WATCH NOW

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Marcellus GCP Webinar: Marcellus Global Compounders Portfolio – 2nd Year Anniversary

Nov 22, 2024 WATCH NOW

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CCP Webinar: ‘Enterprising Compounders’ = Capitalism Without Capital

Nov 14, 2024 WATCH NOW

Curated Collection

HANDPICKED ARTICLES FOR OUR ACTIVE INVESTORS

Consistent Compounders

How Volatile Funds Cost Investors Dear

High volatility in an equity portfolio creates zones of ‘excitement’ and ‘fear’ based on recent performance. This adversely affects the quality of decision making by equity investors. As a result, historically, investor returns in Indian equity funds have been lower than fund returns across different periods. Similarly, a recent example from the US – NYSE […]

Feb 01 . 6 MIN READ READ MORE

Consistent Compounders

The Benefits of Timing are Inversely Correlated with the Quality of Fundamentals

The rate at which fundamentals of a company compound (and hence its share price) over the long term is inversely correlated with the quantum of benefit that an investor can achieve by perfectly timing her purchases at the bottom of the share price trajectory. Moreover, for a portfolio consisting of high-quality companies, benefits from a […]

Jan 03 . 8 MIN READ READ MORE

Consistent Compounders

CCPs use more ‘S-curves’ to elongate their fundamental compounding

Value addition from every initiative undertaken by a company follows an ‘S-curve’ with three parts to it – the investment phase, the growth phase and the fade period. The fundamentals of the overall company are a consolidation of ‘S-curves’ of all initiatives. There are several limiting factors to every initiative such as addressable market size, […]

Dec 01 . 8 MIN READ READ MORE

Consistent Compounders

The Path to Consistent Compounding is Paved with Free Cashflow

There are four key drivers of free cashflow in a business – revenue growth, profit margins, working capital efficiency, and asset turnover. The order of importance across these four drivers differs across businesses. As Marcellus’ CCP companies invest in technology to improve operational efficiencies, those companies that sell day-to-day essentials to their customers whilst avoiding […]

Nov 02 . 17 MIN READ READ MORE

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MeritorQ PMS

Strategy Series

MeritorQ: CAPE Fear

MeritorQ: A Deeper In-Depth Look At MeritorQ’s Forensic Model

MeritorQ: Forensic Accounting Using Quant Methods Boosts Returns

MeritorQ: The Power of Checklists

MeritorQ: CAPE Fear

MeritorQ: A Deeper In-Depth Look At MeritorQ’s Forensic Model

MeritorQ: Forensic Accounting Using Quant Methods Boosts Returns

MeritorQ: The Power of Checklists

New to Marcellus?
Watch this video to know more about us

The Gold List

FEATURED PODCAST

Amidst high input cost inflation, pricing power protects margins & market share of CCPs

FEATURED VIDEOS

FEATURED WEBINARS

Marcellus GCP Webinar: Marcellus Global Compounders Portfolio – 2nd Year Anniversary

CCP Webinar: ‘Enterprising Compounders’ = Capitalism Without Capital

Recommended Reads

Global Compounders Portfolio: Maintaining Discipline amidst Pockets of Excess

Slowing Growth + Rising Risks = Quality Lenders finally Outperforming

Portfolio performance and update on Fundamentals – November 2024

Curated Collection

How Volatile Funds Cost Investors Dear

The Benefits of Timing are Inversely Correlated with the Quality of Fundamentals

CCPs use more ‘S-curves’ to elongate their fundamental compounding

The Path to Consistent Compounding is Paved with Free Cashflow

Interested in more financial news?
Check out our blog for weekly updates

Interested in non-financial news?
Check out our 3 long, 3 short page
to know more

MeritorQ PMS

Strategy Series

New to Marcellus? Watch this video to know more about us

The Gold List

FEATURED PODCAST

FEATURED VIDEOS

FEATURED WEBINARS

Marcellus GCP Webinar: Marcellus Global Compounders Portfolio – 2nd Year Anniversary

CCP Webinar: ‘Enterprising Compounders’ = Capitalism Without Capital

FEATURED newsletter

FEATURED BLOGS

Recommended Reads

Curated Collection

Interested in more financial news? Check out our blog for weekly updates

Interested in non-financial news? Check out our 3 long, 3 short page to know more

New to Marcellus?
Watch this video to know more about us

Interested in more financial news?
Check out our blog for weekly updates

Interested in non-financial news?
Check out our 3 long, 3 short page
to know more