Marcellus Investment Managers was founded in 2018 with their main objective of impacting the Indian economy’s effective capital allocation. We plan to accomplish this by directing household savings into high-quality Indian enterprises with a long history of sound governance and capital allocation. Our portfolio management strategy not only strives to provide healthy returns to our investors but also to do so by assuming relatively moderate risks. Marcellus’ core investment management team has been together for 15 years, and their experiences and lessons learned throughout that time have shaped the company’s investment philosophy. SEBI has granted Marcellus permission to provide Portfolio Management Services (PMS, SEBI registration number INP000006183) and Investment Advisory (IA) services. The Marcellus Consistent Compounders are our flagship investment product. Services for Portfolio Management (CCP). CCP’s investing approach aims to put money into a small number of substantially moated companies that can generate robust earnings compounding over long periods of time with little volatility. The PMS offers enticing performance-based fee choices that align our interests with the investors. It also boasts one of the most cost-effective cost structures in the PMS market, with no entrance, lock-in, or exit loads.
|Year of Inception||2020|
|Number of Stocks||15-20|
|Investment Horizon||Medium to Long Term|
|Fund Managers||Tej Shah|
- Develop a multi-cap portfolio of financial stocks that includes not only lenders but also general insurers, life insurance, fund managers and brokers. Basically, Marcellus King of Capital concentrates on including niche financial businesses in its portfolio.
- The non-borrowing portion of the portfolio provides stability to the portfolio during periods of stress. The investment team of Marcellus King of Capital believes that insurance firms have a lower beta than lending firms, while asset management and investment firms do not take any balance sheet risks.
- Lenders – Long track record of wise capital deployment, cautious credit underwriting, and solid corporate governance
- Life insurers – A significant distribution base, innovative products focused on the client, and a strong actuarial risk management methodology
- General insurers – A commitment to long-term profitability, return on equity, and a history of prudent underwriting throughout cycles.
- Asset managers/ brokers – Moated business strategies and powerful pricing ability
Consistent Compounders and Little Champs are our two prior techniques, and Kings of Capital uses the same three principles for stock selection that those two systems do:
- Exemplary corporate governance and honest accounting;
- Proof from the past of wise capital allocation;
- High entry barriers allow businesses to consistently provide returns on capital that are greater than their cost of capital.
The significance of each of these characteristics is increased by the fact that financial services companies business models are inherently leveraged. As a result, we think we can use our knowledge of forensic accounting and our understanding of entry barriers to building a portfolio of high-quality financial services stocks. In light of this, we have assembled a portfolio of reputable brokers, asset managers, general insurers, and life insurers.
Given that the banks and NBFCs in the Kings of Capital portfolio are well run and have the capital to absorb NPAs and grow after the crisis, we think there is a significant opportunity for them to increase their market share. According to the household survey conducted by the RBI, just 5% of the nation’s wealth—or 95% of it—is made up of financial assets. Therefore, there is a significant structural potential for the non-lenders (insurers, asset managers, and brokers) in the Kings of Capital portfolio to profit from the financialization of Indian family savings.
- They’ll put together a portfolio of 10 to 14 reputable financial firms with clear books of accounts, a lengthy history of successful development, and promoters who know how to make wise capital allocation decisions.
- The portfolio will include the whole range of financial service providers, including lenders (banks, NBFCs, and home finance firms), life insurers, general insurers, and asset managers/brokers, to gain from the financialization of Indian family savings over the next ten years.
- Because financial corporations are leveraged enterprises, the effects of subpar accounting are amplified. They have a decent chance of avoiding severe setbacks thanks to Marcellus’ focused attention on accounting quality and corporate governance.
- The demise of public sector institutions across the financial landscape and the acceleration in market share gains brought on by the numerous disruptions caused in the financial industry over the past few years will both be advantageous for a portfolio of financial companies with a long history of profitable growth and prudent capital allocation.
About Fund Managers
Tej ( Fund Manager )
Tej is a Chartered Accountant and has completed all stages of the CFA exams. He holds a B.Com degree from the University of Ahmedabad. Tej is the Fund Manager of Marcellus. Prior to managing Marcellus King of Capital, Tej worked at Mayfield, the Silicon Valley Venture Capital Fund.
Pramod Gubbi CFA (Marcellus)
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).Prior to that Pramod, served as the head of Ambit’s Singapore office from 2013-to 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 the 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 a 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.
Meet the team
Rakshit Ranjan, CFA
Rakshit spent 6 years (2005-2011) covering UK equities withLloyds Bank (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.
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)
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.
|Product - AMC||Category||AUM (in Cr.)||Performance||1M||3M||6M||1Y||2Y||3Y||5Y||10Y||SI|
Consient compounderAMC Name: Marcellus Inc Date: Dec-18
Little ChampsAMC Name: Marcellus Inc Date: Aug-19
|BSE small Cap||-2.86||-1.42||10.89||9.63||6.74||22.03||NA||NA||17.65|
Kings CapitalAMC Name: Marcellus Inc Date: Jul-20
Rising Giants - PMSAMC Name: Marcellus Inc Date: Monday, December 27, 2021
Rising Giants - AIFAMC Name: Marcellus Investment Managers Private Limited Inc Date: Aug-21
|BSE 500 TR||-0.61||7.73||17.34||11.34||9.15||NA||NA||NA||11.10|
Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.