Strategy Series
Our articles specific to the six investment strategies we offer. Whether you invest with us or are looking to invest, these
articles can you give you an insight into why we make the decisions we make.
CCP’s Amplified Exposure to ‘Enterprising Compounders’
Businesses with strong competitive advantages (and hence high ROCEs), can be categorized into different types based on their capital allocation decisions. Amongst these, the most enterprising ones (the ‘enterprising compounders’) are those which reinvest capital not only to strengthen and evolve their core business, but also to scale up new businesses consistently. Shareholder returns from such businesses […]
Rich rewards from Investing in Quality during the Toughest Phase
A Retailer’s Path to Consistent Compounding
High ROCE of CCP companies attracts new competitors regularly
Global Compounders Portfolio: The Four Pillars of American Capitalism
Marcellus’ Global Compounders Portfolio (GCP) strategically invests in 25-30 deeply moated global companies aligned with megatrends, fostering a consistent mid to high teens compounding of free cash flow/earnings. A large part of our portfolio comprises of American firms, and for good reason. Over the last 30 years, US equities have demonstrated exceptional ability to generate […]
Global Compounders Portfolio: Resilience Amidst Chaos
Global Compounders Portfolio: First Anniversary Review
Unleashing the Power of ‘Owner Operators’ to create Wealth for our Clients
How Will Tight System Liquidity Impact KCP?
Given consistently strong credit demand and weak deposit growth, we are now staring at a tough funding environment with banking sector credit to deposit ratio at an all-time high of ~80%. This funding environment along with consistent regulatory action will separate the men from the boys in the upcoming quarters leading to divergent growth outcomes […]
Kings of Capital Portfolio Newsletter: Quality lenders to benefit from RBI’s credit shakeout
Learning from history: Discounting in Financial Services is a bad strategy
A Simple Approach to Valuing Financial Services Companies
Spotlighting Eureka Forbes
In this month’s newsletter, we delve deeper into Eureka Forbes Limited (EFL) one of the new additions to the portfolio. We see several earnings growth levers for EFL over the next 5 years: (a) Increase in the water purifiers (WP) category penetration backed by improved tap water supply, and initiatives taken by the WP companies […]
Spotlighting Rainbow Children’s Medicare
Reinvesting Profits Back into the Business
Invest in Dominant B2B Firms in Highly Profitable Industries
Portfolio performance and Update on Fundamentals – June 2024
*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 Consistent Compounders Portfolio (CCP) Businesses with strong competitive advantages (and hence high ROCEs), can be categorized into […]
Performance of Marcellus PMS products vis-à-vis respective benchmarks as of 31st May 24
Marcellus Portfolio Performance and Update on Fundamentals – April 2024
Marcellus Portfolio Performance and Update on Fundamentals – March 2024
MeritorQ: Profiting from the Dislocation in Indian Megacaps
Although India’s 20 most profitable listed companies (the ‘Megacaps’) account for around 50% of the profits generated by the BSE 500 companies, these Megacaps account for just 34% of the BSE500’s market cap (down from 41% a decade ago and 45% nearly two decades ago). Indian retail investors’ fascination with small caps seems to be […]
Rebalancing and the Value Effect
The Risks of Owning an Individual Stock
Why Fundamentals and Valuations Matter
MeritorQ: A Deeper In-Depth Look At MeritorQ’s Forensic Model
MeritorQ uses forensic ratios to evaluate the accounting quality of Indian companies. As we highlighted in our February newsletter – Forensic Accounting Using Quant Methods Boosts Returns – our accounting checks can identify accounting frauds well in advance of the actual drawdown event. Using the specific examples of two companies in this newsletter, we discuss how accounting […]
MeritorQ: Forensic Accounting Using Quant Methods Boosts Returns
MeritorQ: The Power of Checklists
MeritorQ: Strength Lies in Numbers
Spotlighting Eureka Forbes
In this month’s newsletter, we delve deeper into Eureka Forbes Limited (EFL) one of the new additions to the portfolio. We see several earnings growth levers for EFL over the next 5 years: (a) Increase in the water purifiers (WP) category penetration backed by improved tap water supply, and initiatives taken by the WP companies […]
Stress Test for Rising Giants
Invest in Dominant B2B Firms in Highly Profitable Industries
Outsized Earnings Growth Alongside Falling Share Prices
For more content on our strategy, visit the archives
GO TO ARCHIVES