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Marcellus PMS: About the Products and The Investment Philosophy

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Welcome to AIF & PMS Experts India Pvt. Ltd.

AIF & PMS experts spend 60-70 per cent of their time learning about the fund manager’s style. We research to examine the investor’s investment habits to connect their risk appetite with their expectations. By performing a thorough analysis of the firm since its start, we study the ROE and ROCE to achieve better out-turn. This indicates whether the fund manager focuses on probability or executing a plan based on strong conviction ideas.

Since the beginning, we’ve been putting a lot of effort into establishing trust with our clients. Our management team is committed to continuing our two-decade tradition of transparency and allowing growth-oriented wealth management leadership. Because of our competence and experience in this market have become one of the most prestigious investment portals for HNIs and Ultra HNIs. Let’s have a look at Marcellus AIF & PMS now.

About Marcellus PMS

Marcellus PMS is the greatest and most well-known PMS system in the country. This article will go through the Marcellus PMS in detail, including its strategies, charges, commission model, and investment objectives. Find everything you need to know about Marcellus Portfolio Management Service in the sections below.

Marcellus Investment Managers has been a trendsetter from its start. In many respects, it has called into question long-held beliefs. It has proven a lot of people incorrect. The Marcellus investment team, led by Saurabh Mukherjea and Rakshit Ranjan, made wealth creation simple and accessible by trustworthy and transparent money allocators. They’ve also maintained high transparency in their transactions, earning them a large online and offline following.

About Marcellus Products

Marcellus AIF – Rising Giants

The Marcellus Rising Giants Fund is an open-ended CAT III AIF strategy with an AUM goal of at least Twenty Crores or more than such amount as the Investment Manager deems appropriate. Marcellus Capital Trust (“Trust”) is a contributory determinate trust established by the Settlor under the Indian Trusts Act, 1882, and has been approved by SEBI as a Category III AIF. The Trust’s initial strategy is the Marcellus Rising Giants Fund. The AIF’s sponsor and investment manager are Marcellus Investment Managers Private Limited. Vistra ITCL (India) Limited manages the Trust.

Minimum Investment: INR 5,00,00,000 for new investors (INR Five Crore) For current clients: INR 1,00,00,000 (INR One Crore), subject to a minimum AUM of INR 5 crore with Marcellus (including AIF).

Lock-in Period: 15 months from the date of the fund’s first capital contribution

MARCELLUS Consistent Compounders PMS

Marcellus’ Consistent Compounders PMS invests in a small number of strongly moated firms that can provide consistent profits growth over time. The process of creating a portfolio is divided into two stages:

  • A filter-based method for generating a 25-30 stock investible universe
  • Build a portfolio of 10-15 equities that produce healthy compounded earnings growth over extended periods using in-depth, bottom-up research of such firms in the universe to determine durable competitive moats.

While the filters are applied once a year, firms in the portfolio and coverage universe are continuously reviewed for moat durability using significant primary and secondary research. Please see their newsletters (here and here) for a more in-depth overview of some of the concepts used in the research process.

Marcellus Little Champs

Marcellus Little Champs is the name of their small-cap approach. Approximately 50 stocks have entered and departed the BSE 500 per year on average over the previous 10 years, showing a significant degree of turnover. In the years leading up to its inclusion in the BSE 500, a stock’s performance tends to beat the Index. The goal is to find such stocks and capture as much of their exceptional performance as feasible.

The three tenets for stock selection in Little Champs are the same as in the Consistent Compounders strategy:

  • Good corporate governance and clean accounting 
  • Evidence of smart capital allocation in the past 
  • Strong entry barriers so that enterprises may achieve a long-term return on capital that is higher than the cost of capital

They intend to maintain a portfolio of up to 15 small-cap firms with strong sustainable competitive advantages built on brands, business processes, and strategic assets, as well as solid corporate governance and capital allocation track records.

Marcellus Kings of Capital

Demonetisation, the ILFS crisis, the collapse of Yes Bank, and the Covid issue have all wreaked havoc on India’s financial services sector over the last decade, placing enormous strain on weak lenders. Investing in high-quality financial equities during a crisis, on the other hand, has shown to be quite profitable in the past. The “Kings of Capital” strategy’s main goal is to build a portfolio of 10 to 14 high-quality financial institutions (banks, NBFCs, life insurers, general insurers, asset managers, and brokers) with solid corporate governance careful capital allocation, and high entry barriers.

Portfolio Construction

In Kings of Capital, the three tenets for stock selection are the same as they were in the previous two strategies, Consistent Compounders & Little Champs:

  • Clean accounting and sound corporate governance; 
  • Historical proof of wise capital allocation
  • Substantial barriers to entry so that businesses may earn a higher return on capital than the cost of capital on a long-term basis.

Because financial services businesses’ business models are inherently leveraged, the impact of each of these characteristics is accentuated. We believe we can combine our forensic accounting and barrier-to-entry knowledge with building a portfolio of high-quality financial services stocks. We’ve built a portfolio of high-quality lenders, general insurers, life insurers, asset managers, and brokers with this in mind.

Bottom Line
AIF & PMS Experts’ strategy is to execute investment techniques that are both innovative and straightforward. Our best-in-class technology, validated by market professionals, allows you to compare portfolios. Our top-of-the-line tools and calculators are specifically designed to give HNI and Ultra-HNI investors a unique investment experience. If you need any guidance regarding Marcellus AIF, never hesitate to get in touch with us.

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