Kings of Capital
Our financials sector focused investment strategy with a portfolio banks, NBFCs, life and general insurers, asset managers and brokers.
Overview
The key objective of our “Kings of Capital” strategy is to own a concentrated portfolio of high quality financial companies. Unlike the 2000s and 2010s, when banks and NBFCs were the only segment of financial services listed on the stock markets, the listed markets now offer a wide variety of high quality choices for investors in the BFSI sector. We therefore have the option to invest across banks, NBFCs, life insurers, general insurers, AMCs, capital market intermediaries, cash management companies, credit rating agencies and insurance intermediaries.
Portfolio Construction
The three tenets for selecting stocks in Kings of Capital remain the same as our our other strategies.
- Clean accounting and good corporate governance;
- Historical evidence of prudent capital allocation; and
- High barriers to entry so that companies are able to sustainably generate return on capital higher than cost of capital.
What we don’t like and generally avoid:
- Turnaround stories
- Lenders with extremely high leverage (generally in excess of 10x)
- Businesses with complex, difficult to understand business models
On the other hand, we like :
- Sustainable business models with low risk balance sheets (eg. private insurers, companies with strong free cash generation)
- Companies which demonstrate profitable market share gains (well run corporate backed NBFCs, select private banks)
- Competent management teams with a track record of shareholder value creation
- Companies with excess capital as they have room to make mistakes and to experiment
Fee Structure
Marcellus offers Kings of Capital PMS with ZERO entry load/exit load and with no lock-in. We offer two fee structures:
| Regular Plan | Direct Plan | |||||
|---|---|---|---|---|---|---|
| Fixes | Variable | Hurdle | Fixes | Variable | Hurdle | |
| Fixed only | 2.50% | 0% | NA | 2% | 0% | NA |
| Variable only | NA | NA | NA | NA | NA | NA |
| Hybrid | 1.50% | 15% | 10% | 1.25% | 15% | 10% |
* High water mark applies for performance fees Minimum investment: INR 50 lac
PERFORMANCE
Performance as on 30th April 2025 (figures in %)
*For relative performance of particular Investment Approach to other Portfolio Managers within the selected strategy, please refer https://www.apmiindia.org/apmi/WSIAConsolidateReport.htm?action=showReportMenu. Under PMS Provider Name please select Marcellus Investment Managers Private Limited and select your Investment Approach Name for viewing the stated disclosure. Performance data shown is net of fixed fees and expenses charged till March 31, 2025 and is net of annual performance fees (Except for Little Champs Portfolio) charged for client accounts whose account anniversary/performance calculation date falls upto the last date of this performance period. Since, for Little Champs Portfolio, performances fees are charged on cumulative gains at the third anniversary, of the respective client account, the effect of the same has been incorporated for client accounts whose third account anniversary falls upto the last date of this performance period. Performance data is not verified either by Securities and Exchange Board of India or U.S. Securities and Exchange Commission.
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