Marcellus MeritorQ PMS | PMS Investment Strategies

Overview
Key features
Fee Structure
Backtested Performance
Performance

Overview

Marcellus’ MeritorQ PMS takes a rules-based approach to screen for companies with low leverage, consistent profitability and which pass the Marcellus’s quantitative forensic accounting framework. From this list of companies, approximately 35-45 companies which are both profitable as well as relatively mispriced are selected to form the final portfolio.

The portfolio is reconstituted semi-annually based on stated portfolio construction rules, effective on the first trading date of April and October.

Key features

Long only portfolio with a Quantitative + fundamentals approach based on good investing principles.
Stocks selected into the portfolio are typically held for at least one year. Roughly 50% annualized turnover observed across 16-year backtest period.
Holds 35-45 stock portfolio diversified across large, mid and small cap segment and factors (quality and value).
- ~40-60% allocation to small and mid-caps seen over backtested history.
- ~20-30% allocation to top 5 stocks.
- No allocation constraints on single stock or sectors as the objective is to select best companies which are both profitable as well as undervalued.
Minimal discretion in portfolio construction process. No star portfolio manager risk.
Suitable for investors with > 3 years investment horizon.

Fee Structure

Marcellus’ MeritorQ PMS comes with zero entry load/exit load and with no lock-in.

	Regular Plan			Direct Plan
	Fixed	Variable	Hurdle	Fixed	Variable	Hurdle
Fixed only	2%	0%	NA	1.5%	0%	NA

Backtested Performance

Period: July-2006 to Aug-2022	BSE 500	Strategy
CAGR(%)	11.6	20.3
Risk (%)	23.2	22
Downside Risk (%)	16.9	16.2
Return/Risk	0.5	0.92
Return/Downside Risk	0.29	0.84
Maximum Drawdown (%)	-66.4	-59.4
Rolling Returns
Average 36months rolling returns	10.2	21.9
Average 36months rolling risk	21.3	20.4
Average 36months rolling return/risk	0.57	1.22

Performance

Performance (as of 31st August, 2023)

*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 is net of annual performance fees 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 30th June 2023. Performance data is not verified either by the Securities and Exchange Board of India or U.S. Securities and Exchange Commission. This circulation is not intended for US clients.

FUND MANAGER

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MeritorQ PMS