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MARCELLUS Consistent Compounders

MARCELLUS Consistent Compounders

Fund Snapshot

Year of Inception 2018
Number of Stocks 12
Investment Horizon Long Term
Fund Managers Mr Rakshit Ranjan

Unique Feature

A concentrated portfolio of heavily watered-down companies

Investment Philosophy

  • Marcellus Consistent Compounders identifies companies with strong pricing power that can help to maintain a large gap between the return on capital employed and the cost of equity.
  • The objective of the Marcellus Consistent Compounders portfolio is to hold such firms for around 8-10 years, where healthy returns are produced amongst volatility, such as that of government bonds.
  • The most critical move in constructing an investment portfolio is to find and stay away from companies that are not accounting-friendly, believes Marcellus Consistent Compounders.

About Fund Managers

Rakshit spent 6 years (2005-2011) covering UK equities with Lloyds Bank (

Rakshit Ranjan

Director, Institutional Equity Research) and Execution Noble (Sector Lead analyst). During these six years, he was ranked amongst the top-3 UK Insurance analysts (Thomson Reuters Extel survey) in the mid-cap space. Since 2011, Rakshit led Ambit Capital’s consumer research franchise which got voted as No.1 for Discretionary Consumer and within top-3 for Consumer Staples in 2015 and 2016. He launched Ambit’s Coffee Can PMS in Mar’17 and managed it till Dec’18. Under his management, Ambit’s Coffee Can PMS was one of India’s top performing equity products during 2018.

Meet the team

Saurabh Mukherjea, FRSA
Founder and Chief Investment Officer

Saurabh Mukherjea is the Founder and Chief Investment Officer of Marcellus Investment Managers. Saurabh was educated at the London School of Economics where he earned a BSc in Economics (with First Class Honours)

Saurabh Mukherjea - AIf pms Expert

and an MSc in Economics (with distinction in Macro & Microeconomics). In London, Saurabh was the co-founder of Clear Capital and in 2007 he was rated by the Extel Survey as one of the top small cap analysts in the UK. In India, Saurabh was rated as the leading equity strategist in 2015, 2016 and 2017 by the Asiamoney polls. Prior to setting up Marcellus, Saurabh was the CEO of Ambit Capital.

Saurabh is a CFA charter holder and a SEBI registered investment advisor. In 2017, upon SEBI’s invitation, he joined SEBI’s Mutual Fund Advisory Committee. In 2019, Saurabh was part of the Expert Committee constituted by SEBI to update and upgrade the PMS regulations. Saurabh has written four bestselling books – Gurus of Chaos (2014), The Unusual Billionaires (2016), “Coffee Can Investing: The Low Risk Route to Stupendous Wealth” (2018) and ‘The Victory Project: Six Steps to Peak Potential’ – and he is a Fellow of the Royal Society of Arts.

Pramod Gubbi, CFA

In the final two years of his 8 year stint in Ambit Capital, Pramod was Managing Director & Head of Institutional Equities (from 2016 to 2018).

Pramod Gubbi_Marcellus

Prior to that Pramod, served as the head of Ambit’s Singapore office from 2013-2016. Before joining Ambit, Pramod worked across sales and research functions at Clear Capital, a British equity research firm. Pramod is Head of Sales in Marcellus and manages the sales & marketing efforts of the firm. He also sits on Investment Committee that discusses and approves investment strategies of the firm.

Besides being a technology analyst, Pramod has served in technology firms such as HCL Technologies and Philips Semiconductors’ Indian arm in Business Development and Engineering respectively.

Qualifications : Pramod is CFA charter holder with a B.Tech from Regional Engineering College, Surathkal and a Post-graduate Diploma in Management from the Indian Institute of Management – Ahmedabad.

Videos

POWER OF COMPOUNDING - Mr. Rakshit Ranjan, Marcellus

A Sector That Continues to Surprise | Saurabh Mukherjea, Marcellus

FAQ's

1. What is the investment philosophy of Marcellus Consistent Compounders?

Consistent Compounders Marcellus’s investment philosophy is based on a deep study of the companies. They believe that the insight story of the companies will showcase the historical consistency of the companies. Marcellus buys 10-15 stocks in their model portfolio of PMS and continues to give healthy returns each time despite various disturbances going on in the world

2. What is meant by Marcellus’s filter-based approach?

The filter-based approach follows three key conditions:

  • It filters the long history of companies and chooses them accordingly.
  • Holding a portfolio of stocks for a long time.
  • Filter-based approach helps to cut out the noise of entry and exit decisions.

3. Is there any contract between Marcellus and its Clients?

Yes, the portfolio manager enters into a written agreement with the client. The contract clearly defines the interrelationship with the client and sets out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities, containing the details as specified in Schedule IV to the SEBI (Portfolio Managers) Regulations, 1993.

4. What are the setup fees, entry load, exit load and lock-in applicable to my PMS account at Marcellus?

There are no setup fees. A client enters and exits at any time he/she wants. There are also no lock-ins applicable. A client at any time can withdraw any asset from Marcellus PMS by giving 05 days prior notice.

5. What fees can a Consistent Compounders Marcellus portfolio manager charge from its clients for the services rendered by him?

A variable fee of 20% on all returns in excess of 8% (no-catch-up) subject to a high watermark annually and a Fixed fee of 2.0% of the Net Asset Value to be given quarterly

6. What will be the tax structure applicable under Marcellus’ PMS?

Marcellus PMS only invests in equities. An investor should consult a tax advisor for any further tax-related queries. Marcellus provides an audit statement at the end of the financial year. This would also aid in tax-related liabilities.

7. What is the meaning of Marcellus' ‘no catch-up'?

Here, no catch-up means that profit share will be applicable only on incremental return over and above the hurdle rate.

8. What is the minimum investment size to open a PMS account with Marcellus?

INR 50 lakhs is the minimum investment size for opening a PMS account with Marcellus.

9. What type of companies are part of the Marcellus portfolio?

According to Marcellus philosophy, it only consists of consistent compounder portfolios that are large and liquid stocks of cash generated companies.

10. Can we reinvest the client’s Marcellus dividends in his portfolio?

Yes, as they are directly credited to the client PMS account and hence get reinvested into the PMS account.

For more details, you can easily contact https://aifpms.com/contact
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