Performance data is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary date falls upto the last date of this performance period. Since fixed fees and expenses are charged on a quarterly basis, effect of the same has been incorporated upto 31st March, 2022. For Little Champs portfolio, since performance fees are charged on cumulative gains at the 3rd anniversary of the respective client account, the effect of the same has not been incorporated in the performance data. (The returns are as on 29th April, 2022)

Inception Date & Benchmark:

Consistent Compounders Portfolio: Inception: 1st Dec,2018 Benchmark: Nifty 50 TRI Little Champs Portfolio: Inception:28th Aug,2019 Benchmark: S&P BSE Small Cap TRI Kings of Capital Portfolio: Inception:28th July ,2020 Benchmark: Bank Nifty TRI Rising Giants Portfolio: Inception:27th Dec ,2021 Benchmark: BSE 500 TRI

Why has Marcellus portfolio underperformed in the last six months of FY22 and are we worried?

For the 6-month ending April 2022, Marcellus CCP portfolio has delivered -6.20% compared to -2.90% for Nifty 50 TRI. CCP stocks under-performing Vs Nifty 50 in the falling market has happened in the past as well (e.g.– during demonetization drawdown) but are we worried? Answer is NO.

  • Attribution analysis for last the six months (refer to the table below) clearly shows that cyclical stocks like Hindalco, NTPC Ltd, Power Grid, etc. has held up Nifty performance. Given Marcellus’ philosophy, we are unlikely to invest in such cyclical stocks as they don’t clear our filters of consistent growth and returns on capital.

CCP stocks had also underperformed during demonetization drawdown but after that it went on to deliver superior returns to investors.

  • Some of our portfolio companies have crude derivatives as raw materials in their business and hence the recent crude oil price spike could lead to some gross margin pressure for a quarter or two. Markets tend to take a short term view and punish companies for margin compression. However, due to high pricing power and incremental operational efficiencies, CCP companies are not only able to protect their margins, but also able to gain market share as competitors with weaker balance sheets and weaker pricing power struggle in this midst. We had explained this attribute of our portfolio companies in greater detail in our 1st June 2020 newsletter titled ‘CCPs avoid price hikes to strengthen pricing power’.
  • Marcellus CCP company’s fundamentals continues to grow, driven primarily by market share gains as competitors got crippled and capital allocation initiatives implemented over the last two years. We have explained it in detail in our monthly newsletter titled: Acceleration in growth rates of CCP companies’ fundamentals

Warren Buffett: “The stock market is designed to transfer money from the active to the patient

Please find below links to our latest newsletters and presentations:

Product Presentation https://marcellus. in/wp- content/uploads/ 2021/11/Marcellu s_CCP_Deck_with



https://marcellus.in/ wp- content/uploads/202 1/11/Marcellus- KCP_Factsheet_REGU LAR_.pdf https://marcellus.in/ wp- content/uploads/Mar cellusRisingGiantsPM S_Regular.pdf https://marcellus.in/ wp- content/uploads/Mar cellus_Little%20Cham ps_presentations.pdf
Newsletter https://marcellus. in/newsletter/con sistent- compounders/ https://marcellus.in/ newsletter/kings-of- capital/ https://marcellus.in/ newsletter/little- champs/
STP FAQ https://marcellus.helpscoutdocs.com/article/96-stp
SIP FAQ https://marcellus.helpscoutdocs.com/article/100-systematic-investment-plan-sip-faqs

**For product/sales related queries please write to sales@marcellus.in**


1. Marcellus Web CIF – Resident Indian Investors

We have taken one step forward with digitization to deliver better user experience for our new investors and partners. We have gone live with online Web CIF (link below) for Resident Indian clients wherein all client details can be filled and submitted to Marcellus along with an upload of all the requisite KYC documents; you no longer need to fill in the excel spreadsheet for Resident Indian clients.

Process Steps to fill in the Web CIF (Resident Indian)

  • Kindly keep a soft copy of all KYC documents in PDF/JPEG format handy before filling the form
  • Link to access Web CIF – https://investor-resources.marcellus.in/generate-shorturl-cif-distributor
  • Fill the basic details and click on generate
  • Copy the URL and paste in new web page to access Client Information Form
  • Fill in the mandatory details on the Web CIF page and upload all KYC documents, Investor details filled in the form should match with KYC documents.
  • At the end, insert captcha and then click on ‘Submit’
  • An acknowledgement email will be sent to you on receipt of Web CIF details at Marcellus

Marcellus team will validate the complete information in CIF and KYC documents and proceed further with form preparation.

2. Digital Sign-Up for Existing Client

  • Existing Client Sign-up is basically for the clients who have an Active investment with Marcellus and wish to sign-up a new strategy through signing only an Investment
  • With this utility all the Resident Individual clients who are signing the document in India can make use of this digital

Key derived benefits from this Initiatives are:

  • Reduction in TAT for processing of Existing account
  • No paperwork involved, 100% digital
  • Eliminate Discrepancies with quick Fund Deployments
  • Less coordination with Distributors / Client
  • Better client onboarding experience

3. Tentative Date – Audited Financials FY21-22

  • The Audited statements for FY21-22 will be tentatively available by the first week of June under the Investor’s login.
  • Please click on this link (https://marcellus.in/how-to-access-your-audited-financials-and-invoices/ )
    to see step by step instructions on accessing audited statements online in Investor’s login.
  • The complete guidance on accessing portfolio online for Investors, below is the link.


4. Extended 100 % Form Filling support for NRI and Non-Individual client offered by Marcellus

  • In our endeavor to smoothen the process of NRI Account opening, we have taken it upon ourselves to pre-fill the NRI application forms for our Partner/Distributor clients.
  • We have facilitated a separate process wherein, based on the “Client Information & KYC documents”, we at Marcellus, will prepare the PMS Account opening booklet for your clients.
  • The Prefilled Forms with all the requisite Sign & IPV markings, will be couriered to the preferred address of the Partners/Client.

Key benefits of this Process are listed down:

  • Enable KRA check and identify need for IPV/OSV upfront and filter AML
  • Improvise TAT of account opening and enable clients to invest
  • Eliminate Re-iteration of seeking information and ratification from client to solve
  • Service & Operations efficiency at both Marcellus and Business Partner

Process Steps for the Marcellus Form Support:

Important Notes:

  • All information in CIF is mandatory and will be used in filling of complete
  • Incomplete CIF, or missing or unclear documents will be rejected by SRM at the time of validation process and will not be processed for form preparations.
  • Request clients to share clear images of the proof scan copies requested and in the readable format, unclear copies will not be
  • All CIF submitted before 12:00 pm will be considered for validation on same day and dispatch by next working
  • All CIF Received after 00 PM will be considered for dispatch on T+2 working day.
  • Ensure to mention the “Dispatchment Address” in the

**For operational related queries please write to clientsupport@marcellus.in**

Note: the above material is neither investment research, nor investment advice. Marcellus does not seek payment for or business from this material/email in any shape or form. Marcellus Investment Managers Private Limited (“Marcellus”) is regulated by the Securities and Exchange Board of India (“SEBI”) as a provider of Portfolio Management Services. Marcellus is also a US Securities & Exchange Commission (“US SEC”) registered Investment Advisor. No content of this publication including the performance related information is verified by SEBI or US SEC. If any recipient or reader of this material is based outside India and USA, please note that Marcellus may not be regulated in such jurisdiction and this material is not a solicitation to use Marcellus’s services. This communication is confidential and privileged and is directed to and for the use of the addressee only. The recipient, if not the addressee, should not use this material if erroneously received, and access and use of this material in any manner by anyone other than the addressee is unauthorized. If you are not the intended recipient, please notify the sender by return email and immediately destroy all copies of this message and any attachments and delete it from your computer system, permanently. No liability whatsoever is assumed by Marcellus as a result of the recipient or any other person relying upon the opinion unless otherwise agreed in writing. The recipient acknowledges that Marcellus may be unable to exercise control or ensure or guarantee the integrity of the text of the material/email message and the text is not warranted as to its completeness and accuracy. The material, names and branding of the investment style do not provide any impression or a claim that these products/strategies achieve the respective objectives. Further, past performance is not indicative of future results. Marcellus and/or its associates, the authors of this material (including their relatives) may have financial interest by way of investments in the companies covered in this material. Marcellus does not receive compensation from the companies for their coverage in this material. Marcellus does not provide any market making service to any company covered in this material. In the past 12 months, Marcellus and its associates have never i) managed or co-managed any public offering of securities; ii) have not offered investment banking or merchant banking or brokerage services; or iii) have received any compensation or other benefits from the company or third party in connection with this coverage. Authors of this material have never served the companies in a capacity of a director, officer or an employee.

This material may contain confidential or proprietary information and user shall take prior written consent from Marcellus before any reproduction in any form.

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