Marcellus’ Partners Bulletin_Oct



All returns are post fees & net of expenses (TWRR). The returns are as on 29th October, 2021.

Inception Date & Benchmark:

Consistent Compounders Portfolio: Inception: 1st Dec,2018 Benchmark: Nifty 50 TRI

Little Champs Portfolio: Inception:28th Aug,2019 Benchmark: S&P BSE Small Cap TRI

Kings of Capital Portfolio: Inception:28th July ,2020 Benchmark: Bank Nifty TRI 

Food for thought for long term investors!! 

We as Marcellus often try to highlight the steps we follow while selecting companies for investment.

Investment in stocks from a long-term perspective requires a deep and rigorous research process. The checklist that follows is by no means a comprehensive one and no checklist can be a magic wand that transforms the process of finding valuable stocks into a quick, leisurely exercise. Here is a glimpse of a few of the standards that an investor should look up to while putting one’s hard-earned money. (Source: Unusual Billionaires)

1.       Industry Attractiveness: It is important to see whether a company is highly dependent on government regulations, the growth potential of the industry, whether the business is generating excess returns on capital over cost of capital, etc. All these factors have a relative attractiveness of the industry that a company belongs to and has an important bearing on the company’s own fortunes. One should seek companies with relatively free of regulation and government interference, low on competitive intensity, high bargaining power with customers and suppliers and growing at double-digit rates. Such industries usually tend to have a small number of relatively large companies and in such situations, the players in that industry are usually able to generate ROCEs in excess of the cost of capital.

2.       Management Quality: We should always look for management teams who have been fair to minority investors, maintain a clean accounting quality and corporate governance with a genuinely independent board for oversight. We tend to stay away from promoters with political connections, especially when these connections underpin the company’s competitive advantage. We also watch out for complacency in management, often seen at the time of succession. Indeed a sense of paranoia, humility and awareness of its own limitations and threat from competitors is a good trait to look out for in management teams. Most importantly, the management’s prudence when it comes to capital allocation is key for the business to sustainably generate returns on capital over cost of capital.

3.       Competitive Advantage: Given India is likely to become one of few large economies with long term growth prospects, thanks to its demographics of a large, young and enterprising population, competitive threats will rise for most businesses. And therefore the real question any investor needs to ask is if the company possesses any unique distinct capabilities that its competitors from the present and future will find it hard to replicate. We call this the moat or entry barrier or sustainable competitive advantages, the extent of which drives the excess returns over cost of capital, which in turn drives the intrinsic value of the business. An investor should look to buy businesses if the share price is well below such an intrinsic value.

Hence , in a nutshell, we should search for companies which can sustainably drive ROCEs in excess of 15 per cent and in excess of the industry average by deriving sustainable competitive advantages from: (a) a culture of innovation; (b) strong brands; (c) architecture, i.e. unique relationships between people within the firm and/or between the firm and its suppliers or customers;(d) strategic assets such as intellectual property, physical property or licences  and (e) clean accounting process.

Please find below links to our latest newsletters and presentations:





Product Presentation content/uploads/2021/10/Marc ellus_CCP_Deck_with_Fact_She et_Oct21_REGULAR.pdf content/uploads/2021/10/Ma rcellus-KCP- Sep2021_Factsheet_REGULAR

_.pdf content/uploads/2021/10/Mar cellus_Little- Champs_presentation_Octobe r-1-2021.pdf


/consistent-compounders/how- portfolio-rebalancing-tools- enhance-investors-returns/ r/kings-of-capital/learning- from-global-financials-part-1- progressive-corp/ tter/little-champs/lethargy- tests-for-our-little-champs/




**For product/sales related queries please write to**



1.       Change of Fee – Process

·         In case of any fee change we would require the below mentioned forms.

ü  Fee Change Form

ü  Fee Schedule as per the Strategy


·         Periodicity:

ü  Fee Change is allowed once in an Annual Billing Period


·         Effective:

ü  Effective date of new fee structure will be T+2 from the date of receipt of the request.


·         Blackout Period:

ü  Last Day and First Day of the Month will not be accounted while calculating the effective date.


·         Website Link:


2.       FOS – Form Support Service from Marcellus

To enhance onboarding experience for our channel partners & clients. Marcellus has taken an initiative to extend support on Prefilling of all New Clients PMS & Requisite Demat + others forms by Marcellus Onboarding Team. Through this initiative we expect to solve complexities involve in PMS documentations due to multiple set of accounts to be opened for single client with different entities. 

Key benefits of this Process are listed down: 

·         Enable KRA check and identify need for IPV/OSV upfront and filter AML Validation.

·         Improvise TAT of account opening and enable clients to invest sooner.

·         Eliminate Re-iteration of seeking information and ratification from client to solve observations.

·         Service & Operations efficiency at both Marcellus and Business Partner end. 

Process Steps for the Marcellus Form Support:

·         Download the Client Information Form [CIF] for Resident Client, NRI & Non individual through links shared below:


Ø  Resident Client:

Ø  All Non-Individual:

Ø  Non-Resident Indian:


·         Fill in complete client (s) details in CIF and refer to supporting KYC documents to be shared along with CIF.

·         Ensure to share CLEAR scan copies of supporting documents & confirm dispatch address details.

·         Email CIF and Supporting KYC documents to for validation.

·         Respective SRM will validate the complete information in CIF and supporting KYC documents.

·         If Validation is complete, team will carry of necessary KRA AML checks and prepare the Prefilled form based on the CIF & KYC documents.

·         In case of need for IPV & OSV respective SRM will reach back to Partners.

·         Prefilled forms will be couriered to the requested address with T+1 days of the complete validation date.  

Important Notes: 

·         All information in CIF is mandatory and will be used in filling of complete form.

·         Incomplete CIF, or missing info. or unclear documents will be rejected by SRM at the time of validation process and will not be processed for form preparations.

·         Request clients to share clear images of the proof scan copies requested and in the readable format, unclear copies will not be accepted.

·         All CIF submitted before 12:00 pm will be considered for validation on same day and dispatch by next working day.

·         All CIF Received after 12.00 PM will be considered for dispatch on T+2 working day.

·         Ensure to mention the “Dispatchment Address” in the CIF.

·         If CIF is valid, forms will be prepared and dispatched by end of next working day evening.

·         In case of any further queries & clarification, request you to connect with your respective Service Relationship Manager for assistance.


**For operations related queries please write to**


Team Marcellus

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Note: the above material is neither investment research, nor investment advice. Marcellus does not seek payment for or business from this material/email in any shape or form. Marcellus Investment Managers Private Limited ("Marcellus") is regulated by the Securities and Exchange Board of India ("SEBI") as a provider of Portfolio Management Services and as an Investment Advisor. Marcellus is also a US Securities & Exchange Commission ("US SEC") registered Investment Advisor. No content of this publication including the performance related information is verified by SEBI or US SEC. If any recipient or reader of this material is based outside India and USA, please note that Marcellus may not be regulated in such jurisdiction and this material is not a solicitation to use Marcellus's services. This communication is confidential and privileged and is directed to and for the use of the addressee only. The recipient, if not the addressee, should not use this material if erroneously received, and access and use of this material in any manner by anyone other than the addressee is unauthorized. If you are not the intended recipient, please notify the sender by return email and immediately destroy all copies of this message and any attachments and delete it from your computer system, permanently. No liability whatsoever is assumed by Marcellus as a result of the recipient or any other person relying upon the opinion unless otherwise agreed in writing. The recipient acknowledges that Marcellus may be unable to exercise control or ensure or guarantee the integrity of the text of the material/email message and the text is not warranted as to its completeness and accuracy. The material, names and branding of the investment style do not provide any impression or a claim that these products/strategies achieve the respective objectives. Further, past performance is not indicative of future results. Marcellus and/or its associates, the authors of this material (including their relatives) may have financial interest by way of investments in the companies covered in this material. Marcellus does not receive compensation from the companies for their coverage in this material. Marcellus does not provide any market making service to any company covered in this material. In the past 12 months, Marcellus and its associates have never i) managed or co-managed any public offering of securities; ii) have not offered investment banking or merchant banking or brokerage services; or iii) have received any compensation or other benefits from the company or third party in connection with this coverage. Authors of this material have never served the companies in a capacity of a director, officer or an employee.

This material may contain confidential or proprietary information and user shall take prior written consent from Marcellus before any reproduction in any form.