Our articles specific to the five 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.
Every year there will be a couple of sectors and a handful of stocks that give outsized returns helped by short term earnings momentum and narratives around the same. However, such sectors and stocks are generally unable to replicate their short-term success over the medium to long-term. While chasing momentum can provide short term enrichment, […]
Every year there will be a couple of sectors and a handful of stocks that give outsized returns helped by short term earnings momentum and narratives around the same. However, such sectors and stocks are generally unable to replicate their short-term success over the medium to long-term. While chasing momentum can provide short term enrichment, […]
The long-term valuation of a company is determined by the growth and longevity of its free cash flows (FCF). Its share price, on the other hand, is heavily influenced by near term earnings/events. This creates a disconnect between the intrinsic value of the company and its share price. This disconnect has been stark for the […]
For the four quarters ending 2QFY23, the Rising Giants portfolio witnessed median revenue growth of 23% and EBITDA growth of 14%. Some portfolio companies faced headwinds around Covid-19 related revenues tapering off and higher input prices. However, as is the norm in stockmarkets, the -16.44% price correction in the portfolio (since inception) is extrapolating these […]
Brinton Johns & Brad Slingerlend’s 2014 paper, ‘Complexity Investing’, discusses how it’sfutile to forecast extreme event like pandemics, stockmarket crashes and tech disruptions. These events belong to complex ecosystems with unpredictable outcomes and a tendency towards polarization i.e. a few winners prevail – those who constantly adapt, keep building on their strengths and thus end […]
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This month we place the spotlight on Ultramarine & Pigments Limited (UMP), a top 3 global manufacturer of inorganic Ultramarine Blue pigment (and the leader in India and Asia-Pacific) and amongst the top manufacturer of anionic surfactants in India. Ultramarine’s pigment business enjoys significant manufacturing complexities around yield, purity and consistency particularly for industrial grade […]
While the ILFS crisis highlighted the risks associated with India’s shadow lenders, there are a few NBFCs which have not only been able to effectively compete against banks but have also been able to generate superior ROE and earnings growth. The three NBFCs in the Kings of Capital portfolio – Bajaj Finance, Aavas Financiers and […]
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 […]
Some of our best reads you shouldn’t miss on Marcellus
HANDPICKED ARTICLES FOR OUR ACTIVE INVESTORS
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 […]
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 […]
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, […]
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 […]
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