Marcellus Curation Portfolio

Overview

Marcellus’ Curation is a flexi-cap portfolio focused on investing in high-quality, well-managed Indian companies that are positioned to deliver healthy growth over the long term. The strategy invests across various sectors and market capitalizations. Within the portfolio, smaller cap investments are oriented towards discovering high-quality, well-managed Indian companies early in their growth journey, while larger cap holdings provide stability, particularly during periods of market downturn.

Our selection process is rigorous and multi-layered:

1. Forensic Filter: The initial step involves filtering companies from the listed universe based on potential red flags identified through our in-house forensic accounting framework, helping us avoid businesses with questionable practices.
2. Capital Allocation Assessment: As a second step, we identify and exclude companies that have historically demonstrated a lack of consistency and prudence in their capital allocation decisions.\
3. Deep-Dive Research: This involves conducting in-depth analysis of companies that pass our forensic and capital allocation filters. This research aims to thoroughly understand the fundamental drivers of their competitive advantages and their capital allocation strategies in sustaining existing competitive advantages, developing new revenue growth drivers, and their capacity for significant innovation or disruption within their operating paradigm.

We use this process to narrow down on an investable universe of stocks. We then construct a portfolio of 15-30 undervalued stocks from this universe with the objective of compounding capital at a healthy rate over the long term.