1-month 3-month 6-month 1-year 2-year Since inception
Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark Portfolio Benchmark
Consistent Compounders 7.00% 4.19% 11.25% 7.00% 10.53% 14.71% 57.38% 57.38% 34.17% 17.23% 28.09% 16.84%
Little Champs 17.33% 18.76% 15.67% 24.28% 36.23% 52.83% 98.14% 135.62% 47.65% 46.91%
Kings of Capital 4.22% 2.00% 3.90% 2.20% 5.71% 12.64% 33.00% 56.51%

All returns are post fees & net of expenses (TWRR). The returns are as on 18th June,2021.

Inception Date & Benchmark:

Consistent Compounders Portfolio: Inception: 1st Dec,2018 Benchmark: Nifty 50

Little Champs Portfolio: Inception:28th Aug,2019 Benchmark: S&P BSE Small Cap

Kings of Capital Portfolio: Inception:28th July ,2020 Benchmark: Bank Nifty (Inception returns are absolute in nature since portfolio has not completed one year)


Many of our investors and channel partners have been asking of late as to why Marcellus CCP portfolio has underperformed and is there any cause of concern. Even though we believe one year (specially in bull run) is too short a period to infer anything but still we will share our two cents on the above topic:

  • Starting from the bottom of the market for as little a period as one year, it always appears that the not so quality stocks outperform but as shown in the table below even if the horizon is slightly increased to include the tumultuous period in the market, the performance picture changes completely.

Exhibit 1:

Year 1 Year 2 Year 3 2 yr return (CAGR) 1 yr return Drawdown
Index 100 60 121 10% 102% -40%
Portfolio 100 90 144 20% 60% -10%
Outperformance of Portfolio 10% -42%
Source: Marcellus Investment Managers

Exhibit 2:

Share price on 01-01-2020 Share price on 31-03-2020 Share price on 31-03-2021 12 month return (1st Jan’20 – 31st Mar’21) 12 month return (1st Apr’20 – 31st Mar’21) Drawdown (1st Jan’20-31st Mar’20)
NIFTY50 Index 12183 8598 14691 21% 71% -29%
Marcellus’ CCP NAV 13 11.31 17 30% 50% -13%
Outperformance of Marcellus’ CCP PMS 10% -21%
Source: Marcellus Investment Managers
  • While share price wise, Marcellus Consistent Compounder Portfolio may have underperformed in the past one year, fundamentally, the portfolio companies have done significantly better than their peers gaining market share over the same period. As discussed in our recent CCP newsletter (click here to read), over the past 1 year, 5 years, 10 years and 20 years, most CCP companies have compounded their free cash flows consistently at around 25% CAGR in spite of several disruptive events impacting the industries in which they operate.

Exhibit 3: Free Cash Flow growth of Marcellus’ CCP PMS companies over various time periods

Free Cash Flow growth of Marcellus’ CCP PMS companies over various time periods
FCFE CAGR 5-years 10-years 20-years
FY01-06 FY06-11 FY11-16 FY16-21 FY01-11 FY11-21 FY01-21
Abbott India Ltd. -10% 1% 48% 24% -6% 35% 13%
Asian Paints Ltd. 19% 41% 18% 19% 30% 19% 24%
Berger Paints India Ltd. 24% -1% 44% 10% 10% 26% 18%
Nestle India Ltd. 17% 15% 10% 15% 16% 12% 14%
Pidilite Industries Ltd. 42% 4% 83% 1%* 22% 40%* 30%*
Titan Company Ltd. -16% 179% -21% 62% 54% 13% 32%
Divis Laboratories Ltd. N A 54% 35% 9% 34%^ 21% 27%^
Page Industries Ltd. N A 36% 33% 39% 25%** 36% 31%**
Relaxo Footwears Ltd.@ N A N A -36% 293% 23% 59% 40%
Dr. Lal Pathlabs Ltd. N A N A 49% 22% N A 35% N A
Weighted Average 17% 35% 29% 41% 23% 29% 25%
Source: Marcellus Investment Managers; Ace Equity; FCFE = Operating cash flow less Capex less Investment in Subsidiaries/Strategic investments /Acquisitions less Net debt repayments less Interest Paid less Lease liabilities; *In case of Pidilite, high capex on account of Araldite acquisition skews the CAGR % making it uncomparable, hence w e have taken FY16-20, FY11-20 and FY01-20; ^Divis’ FCFE is for FY02-11 and FY02-21 since company was not listed in FY01; **Page’s FCFE is for FY04-11 and FY04-21 since company was not listed prior to FY04; @Relaxo’s FCFE for FY01-06 and FY06-11 shows NA since company had near ZERO FCFE during those periods

Revenue is Vanity, Profit is Sanity, and Cash is King.” – Alan Miltz

Please find below links to our latest newsletters and presentations:

https://marcellus.in/wp-content/uploads/2021/06/Marcellus_CCP_Deck_with-Fact-Sheet_Regular.pdf https://marcellus.in/wp-content/uploads/2021/06/Marcellus-KCP-Regular.pdf https://marcellus.in/wp-content/uploads/2021/06/Marcellus_Little-
Newsletter https://marcellus.in/newsletter/consistent-compounders/indias-greatest-cash-generation-machines-keep-compounding/ https://marcellus.in/newsletter/kings-of-capital/kings-of-capital-lenders-ideally-placed-to-press-the-accelerator/ https://marcellus.in/newsletter/little-champs/little-champs-doubled-their-free-cashflow-in-fy21/
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.Extended 100 % Form Filling support for NRI 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.

To enable us pre-fill these forms, please help us with the below mentioned:

Client Information Form [CIF] & KYC documents:

  • CIF (Client Information Form) to be duly filled with all the details asked for. This is mandatory data required to complete the form. You can download the CIF by clicking on the below link.
    Path: click here
  • Copy of KYC documents as prescribed in the checklist of the CIF form.
  • Detailed process is available in the below link.
    Path: https://marcellus.in/wp-content/uploads/2021/06/Letter-ccp-partner-nre-hdfc.pdf
  • In case you still wish to access to the entire NRI booklet of PMS+HDFC Bank form. You can click on the below link.

We hope to improvise the service level, communication, response time, query solving, account opening TAT and all other operational services, both at Marcellus & our Channel Partner’s end. We look forward to a mutually beneficial and enriching partnership.

2. Accessibility of Audited Financials under Investors Login.


3. PMS Operating Charges

  • PMS operating charges applicable with effect from 01-Jul-2021 (i.e. post this quarterly billing).

Marcellus Investment Managers Pvt Ltd
PMS Operating Charges (effective from 01-July-2021)-Excluding Taxes

S.No Description Equity PMS (CCP/KCP/LCP) Liquid STP PMS Remarks
1 Set-up costs(notary+Stamp duties) Rs.1,750 NIL One Time-First Invoice
2 Brokerage Cost 10bps+STT+Govt Levies As transacted – on txn value
3 Custody Charges 3.0 bps PA NIL Quarterly-on average daily AUM
4 Fund Accounting Charges 3.0 bps PA 3.0 bps PA Quarterly-on average daily AUM
5 Annual Client CA Certification Rs.2,000 Rs. 2000 Anually-end of the year
6 Non Resident PIS Reporting Charges At Actuals
Notes:Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled

4. Requirement of Addendum for the old version form.

Consistent Compounders Portfolio: https://marcellus.in/ccp_partner/

Kings Of Capital : https://marcellus.in/kcp_partner/

Thank you and look forward to your continued support!!

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

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