| Alpha (1Y) | Beta (1Y) | Standard Deviation (1Y) | % of +ve Months (SI) |
|---|
Marcellus Little Champs PMS Portfolio (LCP)
Key People
Mr. Saurabh Mukherjea
Founder & CIO
Mr. Ashvin Shetty
Portfolio Manager
Investment Objective
Marcellus Little Champs PMSÂ aims to identity small-cap companies (Market cap <US$500 Million or approx. 3500 Cr) with an excellent corporate governance and capital allocation track record and strong sustainable competitive advantages built around brands, business processes and strategic asset.
Investment Strategy
Marcellus Little Champs Portfolio or Marcellus LCP PMS follows a thorough analysis based on two objective steps as mentioned below :
• Marcellus LCP follows an objective analysis based on 12 accounting ratios covering income statement (revenue/ earnings manipulation), balance sheet (correct representation of assets/liabilities), cash pilferage and audit quality checks.
• Marcellus Little Champs Portfolio or Marcellus LCP PMS bets on the First rank stocks on each of the 12 ratios individually. These ranks then cumulated across parameters to give a final pecking order on accounting quality for stocks.
Marcellus Little Champs LCPÂ PMSÂ then picks companies from the filtered universe after interaction with industry players, competition, channel partners etc.
Investment Philosophy
The 3 attributes for selecting stocks in Little Champs remain the same as in Consistent Compounders strategy:
1) Clean accounting and good corporate governance;
2) Historical evidence of prudent capital allocation; and
3) High barriers to entry so that companies are able to sustainably generate return on capital higher than cost of capital.
At Marcellus, the Purpose is to make wealth creation simple and accessible by being trustworthy and transparent capital allocators.
The investment philosophy at Marcellus has evolved from the ideas of Kirby and Thiel, which they have refined further.
The investing approach has 3 pillars:
Clean Accounts:Â They have quantitative frameworks which use a combination of forensic accounting and capital allocation assessment define our investible universe.
Capital Allocation: They look for companies with superior track record of capital allocation – companies that generate free cash flows and reinvest them in the business to fuel further growth.
Competitive Advantage:Â The experienced investment team through in-depth primary research, constructs a portfolio of companies with deep competitive moats.
These companies are then held on for long periods of time with little or no churn, which allows them to capture the benefits of long-term compounding and deliver superior returns.
Why Marcellus LCP?
Marcellus Little Champs Portfolio or Marcellus LCP PMS is a small-cap focused strategy.
On an average over the last ten years, about ~50 stocks have entered/exited BSE 500 every year indicating a high degree of churn. A stock entering the BSE 500 tends to significantly outperform the Index in the years preceding the inclusion.
The aim is to identify such stocks and capture the strong performance as much as possible.
Awards & Achievements
• In 2021, Marcellus’ Consistent Compounders Portfolio or Marcellus CCP was awarded Rank #2 as the Best Newcomer PMS across all categories, on a 2Y Absolute Returns Basis. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.
• In 2021, Marcellus’ Little Champs Portfolio or Marcellus LCP was awarded Rank #2 as the Best Newcomer PMS across all categories, on a 1Y Absolute Returns Basis. These Awards were hosted by PMS AIF WORLD, in association with IIM-Ahmedabad.
Performance Table #
| Trailing Returns (%) | 1m return | 3m return | 6m return | 1y return | 2y return | 3y return | 5y return | 10y return | Since inception return |
|---|---|---|---|---|---|---|---|---|---|
QRC Report Card *
| Strategy | Category | Fund Manager | Date of Inception | Age Of PMS | Corpus (in Cr, approx) | Benchmark | Returns SI (CAGR) | Stocks In Portfolio | Sectors In Portfolio |
|---|---|---|---|---|---|---|---|---|---|
| Marcellus Investment Managers Little Champs | Small Cap | Ashvin Shetty | 29 August 2019 | 5Y 2M | BSE 500 TRI | 9 |
| Portfolio Quality (Q) | Portfolio Risk (R) | Portfolio Consistency (C) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Index | Category Alpha (1Y) | Relative Alpha (1Y) |
% of +ve Months
(Fund Data) |
Alpha (1Y) | Beta (1Y) |
Standard Deviation (1Y)
(Fund Data) |
Sharpe Ratio (1Y)
(Fund Data) |
Alpha (SI) | Information Ratio (SI) | Consistency Ratio % |
| Nifty 50 | 22.66% | -40.26% | 59.32% | -17.60% | 0.49 | 17.70% | 0.22 | -0.74% | -0.04 | 49.15 % |
| Nifty 500 | 10.98% | -40.76% | -29.78% | 0.71 | -4.27% | -0.26 | 47.46 % | |||
| Nifty Midcap 100 | -8.73% | -39.63% | -48.36% | 0.69 | -13.31% | -0.91 | 44.07 % | |||
| Nifty Smallcap 100 | -22.65% | -38.85% | -61.50% | 0.76 | -11.79% | -0.76 | 40.68 % | |||
VIEW DETAILED QUALITY, RISK, CONSISTENCY ANALYSIS
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Which is the best company through which an investor can invest in Marcellus Little Champs PMS Portfolio (LCP)?
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Disclaimer
#Returns as of 31 Oct 2024. Returns up to 1 Year are absolute, above 1 Year are CAGR.
*QRC Report Card data is updated quarterly. Current data is as of Jun 24.
