MARCELLUS Little Champs

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Welcome to AIF & PMS Experts India Pvt. Ltd.

About Company

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.

Fund Snapshot

Year of Inception 2019
Number of Stocks 12-14
Investment Horizon Medium to Long Term
Fund Managers Ashwin Shetty

Fees Structure:

Annual fixed fees of 1.5% (charged quarterly) Fees for performance: 20% of profits above a threshold of 10%. On the third anniversary, performance fees will be assessed on cumulative profits. The first 10% of annual returns (net of fixed fees) will not be subject to performance fees. Performance fees will be imposed without catch-up. Performance fees are based on the high water mark. Performance costs will be levied as of the redemption date if redeemed before the period of three years has expired. Exit Load: If redeemed in the first, second, or third year, respectively, it is 3%, 2%, and 1%. Investment requirement: 50 lacs

Performance

Except for Little Champs Portfolio, all performance data shown is net of fixed fees and expenses incurred through June 30, 2022, as well as net of annual performance fees incurred for client accounts whose account anniversary or performance calculation date falls up until the end of this performance period. The impact of this has not been taken into account in the performance data since Little Champs Portfolio performance fees are assessed on cumulative gains at the third anniversary of the corresponding client account.

Look for Hermann Simon’s celebrated ‘Hidden Champions

  • SMEs, sometimes family-owned, produce unnoticeable goods yet are the best in the world at those goods.
  • They often operate in narrow markets and create distinctive items utilizing exclusive methods. 
  • Operate quite near to the clients who depend on their products and find it difficult to switch suppliers.
  • These companies’ competitive advantages are more often attributed to the quality, total cost of ownership, excellent performance, and tight client relationships than to cost leadership.

Unique Feature

  • About 50 stocks have entered or quit the BSE 500 annually on average over the past ten years, showing a significant level of churn.
  • The years before the stock is included in the BSE 500 index show the greatest relative outperformance.
  • Find small-cap firms with a market valuation of less than US$500 million that have demonstrated sound corporate governance, a successful track record with capital allocation, and long-lasting competitive advantages based on brands, operational procedures, and strategic assets.

Methodology A Few Of Our Forensic Ratios

  • 12 accounting ratios that examine cash theft, accurate reporting of assets and liabilities on the balance sheet, and revenue/earnings manipulation in the income statement. Consolidated historical financials spanning six years. Companies that score highest on each of the 12 measures separately (some examples are outlined in the table on the right). These rankings were then added together based on several criteria to provide a final ranking of the accounting quality of stocks. The renowned forensic accounting book “Financial Shenanigans” by Howard M. Schilit inspired the use of these ratios.

Investment Philosophy

  • First step of Marcellus Little Champs is to position stocks on each of the 12 ratios individually. These ranks are then accumulated through parameters to give a final order on the accounting standard of stocks.
  • Objective of the Marcellus Little Champs investment team is to conduct research focused on 12 accounting ratios, including income statement (revenue/gains handling), balance sheet (correct representation of assets/gains), cash pilferage and quality audit checks.

About Fund Manager

Ashwin Shetty ( Fund Manager ) 

Ashwin Shetty

 

Ashwin Shetty has more than 10 years of experience in equity research. He led the coverage of the automobile sector at Ambit Capital from 2010 to 2017. He was ranked in Starmine Analyst Awards 2013 and 2016 for his stock-picking abilities during this stint. He thereafter worked as a senior analyst for Ambit’s Mid and Small-cap PMS funds till November 2018. Prior to joining Ambit, he worked with Execution Noble as an analyst covering the consumer and media space. He has also worked with KPMG’s and Deloitte’s statutory audit departments from 2004 to 2007 gaining extensive experience across Indian accounting standards and financial statement analysis.

Qualifications: Ashwin Shetty is a BCom graduate from Narsee Monjee College (Mumbai). He is a qualified Chartered Accountant (ICAI India) and Chartered Financial Analyst (CFA Institute, USA).

Meet the team

Saurabh Mukherjea, FRSA Founder and Chief Investment Officer

Saurabh Mukherjea - AIf pms Expert

 

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.

Pramod Gubbi, CFA

Pramod Gubbi_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.

Capital Allocation

Allocated Category Allocation Percentage
Large Cap 0
Mid Cap 9%
Small Cap 90%
Cash / Equivalent 1%

 

Top 5 Stock Holdings

Name of The Stock Allocation Percentage
Aavas Financiers Ltd. 9%
Alkyl Amines Chemicals Ltd. 9%
GMM Pfaudler Ltd. 9%
V-Mart Retail Ltd. 9%
Fine Organic Industries Ltd. 7%

Top 5 Allocated Sectors

Sector Name Allocation Percentage
Chemicals 29.5%%
Financials 20%%
Light Industrials 18.5%%
Consumer Staples 9%
Consumer Discretionary 8.5%%

Fund Analysis

PE 87%
Standard Deviation 27.9%
Beta 0.66%
Product - AMC Category AUM (in Cr.) Performance 1M 3M 6M 1Y 2Y 3Y 5Y 10Y SI

Little Champs

AMC Name: Marcellus Inc Date: Aug-19
Small Cap
(PMS)
747 Strategy 5.64 3.6 4.19 -1.32 -6.05 9.3 NA NA 18.16
BSE small Cap 8.03 12.35 18.51 26.55 15.15 20.41 NA NA 20.9

Kings Capital

AMC Name: Marcellus Inc Date: Jul-20
Multi Cap
(PMS)
509 Strategy 4.74 5.54 5.77 14.19 4.49 4.1 NA NA 11.11
BSE 500 7.94 10.85 13.81 21.3 13.24 17.22 NA NA 22.96

Rising Giants - PMS

AMC Name: Marcellus Inc Date: Monday, December 27, 2021
Mid Cap
(PMS)
432 Strategy 4.91 5.3 7.85 13.35 -6.27 NA NA NA -5.46
BSE 500 8.03 12.35 18.51 26.55 15.15 NA NA NA 16.33

Rising Giants - AIF

AMC Name: Marcellus Investment Managers Private Limited Inc Date: Aug-21
long only
(AIF)
322 Strategy 4.75 2.36 9.91 5.61 -3.61 NA NA NA -2.17
BSE 500 TR 7.06 6.19 14.40 13.44 12.08 NA NA NA 12.75

Book a call with our experts

For any queries, contact us on Mobile: +91 95616 10108, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected]     Whatsapp-logo

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.