MARCELLUS Consistent Compounders

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.
Consistent founder Marcellus is our main investment. Portfolio Management Services (CCP). CCP’s investment approach aims to invest funds in a small number of effectively distressed companies that can generate strong long-term returns with little volatility. PMS offers attractive, performance-based fee options that are aligned with the interests of investors. It also features one of the most cost-effective hull structures on the PMS market with no inlet, locking or outlet loads.


Consistency Compounder Marcellus' investment philosophy is based entirely on the company's research. He believes the company's insight story will demonstrate the company's historical stability. Marcellus has bought 10-15 shares of PMS's model portfolio and despite all the turmoil in the world, it is giving good returns every time.

The filter-based approach follows three key conditions: It filters the long history of companies and chooses them accordingly. Hold a stock portfolio for a long time. The filter-based approach helps reduce the noise of input and output decisions.

Marcellus PMS only invests in stocks. Investors should consult their tax advisors on other tax-related questions. Marcellus files an audit report at the end of the fiscal year. This also helps with your tax obligations.

In this case, no catch up recovery means that dividends will only be applicable on excess returns beyond the hurdle rate.

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

According to the Marcellus philosophy, it consists only of mixed portfolios made up of large and liquid shares of cash-generated companies.

Fund Snapshot

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

Investment Strategy

Consistent Compounders Marcellus’ PMS invests in a strong portfolio of companies with a strong foundation capable of delivering healthy earnings growth over the long term. Portfolio creation is a two-step process technique.

  • A filter-based method to generate a spending universe of 25-30 stocks.
  • A comprehensive bottom-up study of these companies in the space to evaluate a long-term competitive moat and build a portfolio of 10-15 stocks that supports solid compound acquisitions over time.

Although filters are implemented annually, companies in their portfolios and coverage are continuously monitored for the sustainability of the canal through extensive primary and secondary research. You can find their newsletters for a more detailed discussion of some frameworks used in their ongoing research process.

Let’s discuss it briefly. Marcellus PMS has three core investment pillars. They hold business enterprises for long periods with little or no churn, allowing them to capture the long-term compounding magic and deliver superior returns.


Clean Accounts:Their investible universe is defined by our quantitative frameworks, which use a fusion of forensic accounting and capital allocation assessment.


Capital Allocation: You look for companies with a strong history of capital allocation. They admire companies that generate free cash flow and reinvest it in the company to drive future growth.


Competitive Advantage: The experienced investment team constructs portfolios of companies with strong competitive advantages using extensive primary research.

Fund Structure

Consistent Compounders PMS has zero I/O overhead and no locks. Our customers can choose one of the following pricing plans:

  1. A fixed fees model (2% p.a. fixed fees + zero performance fees)
  2. A hybrid model (1% p.a. fixed fees + performance fees of 15% profit share above a hurdle of 12%, no catch-up).

Performance fees are subject to a high water mark; the minimum investment is INR 50 lacs.


Performance costs are subject to the highest standards. Minimum investment amount is INR 50 Lac

Participation area Corporate governance Analysts use forensic accounting to monitor cash outflows by “distributors” of investee companies.


Succession planning 30 years after the 1991 reforms that liberalized India’s economy, many of India’s leading “facilitators” are now over 70 years old. As a result, they pass the baton to the next generation. 

Capital allocation Our investment approach, which invests in dominant franchises with a ROCE of 40% or higher, naturally results in companies that generate large amounts of free cash flow. 

 If this excess cash flow is not intelligently reinvested, franchising becomes difficult. organizational structures India’s regulatory framework, particularly in relation to corporate law and stock market law, is still evolving. This puts unsuspecting people at risk.

he desired result They leave the company seeing big distractions. When they notice the onset of what appears to be a simple distraction, they name the “meadows” and explain why their fortune creation may be in jeopardy. 

Through our conversations with the company’s suppliers, customers, and competitors, they keep a close eye on an up-to-date “amount”. If his successor is not present or is poorly trained, they investigate the situation and how it affects him.

They have promoted openness in the money management business in India by serving on multiple regulatory committees, writing for the press and speaking publicly about regulatory changes in social media and broadcast.


They interact with the “promoter” who understands her ideas about capital allocation as soon as the company notices that money is being raised or going into an unrelated industry. It’s our point if you’re not happy with what you’re doing (arguments for other capital allocation strategies). If our engagement is not successful after 6 months, they will consider ending our engagement.

Unique Feature

A concentrated portfolio of heavily watered-down companies

Investment Process

Use forensic accounting to avoid common pitfalls. Financial data for the last six years are consolidated. First, rank stocks based on each of the 12 ratios separately (some examples are shown in the table to the right). This rating is then averaged across the attributes to produce a final stock accounting quality rating, with D1 being the highest and D10 being the worst.

 If one builds a list of stocks using the criteria of a double filter* of double-digit year-over-year earnings growth and return on capital over cost of capital every year for ten consecutive years, and then creates a portfolio of those stocks every year and keeps each of those annual returns in the portfolios for the following ten years (no loss), the bar graph on the right shows the performance in these portfolios.


There Are Two Conclusions From This Exercise:

  • This filter-based portfolio generates annualized returns of 20-30 percent (in INR) and outperforms the Sensex by 8-12 percent.
  • For periods longer than three years, the volatility of returns of such portfolios is comparable to that of Indian government bonds.


The above returns (for the filter and Sensex based portfolio) are calculated on the basis of total shareholder return, which means all dividends are included.


Invest In Franchises With High Pricing Power And High Reinvestment Rates Using Marcellus’ Longevity Framework

Free Cash Flow growth rate

  • Revenue growth, return on capital employed, and capital reinvestment rate
  • Calculate the increase of industry demand, as well as its drivers and resiliency.
  • Calculate revenue growth in relation to anticipated market share increases.
  • Are profit margins and asset turns projected to improve significantly
Moat score

Strength of today’s pricing power

Can a competitor provide a product that is a third cheaper and does not affect our investment company’s profitability or market share?

Factors driving SELL decision at Marcellus


Full withdrawal due to Marcellus’ research analysts’ weaker views on the company’s strength and continued competitive advantage (longevity).

Optimize portfolio concentration by exiting when a new stock is added to the portfolio – due to increased confidence in the strength and sustainability of the new company’s competitive advantages (which was not previously in the portfolio)

A partial sale of a stock as part of a portfolio rebalancing to bring it into line with the stock’s relative fundamentals compared to other stocks in the portfolio.

Lethargy score

Analysis based on efforts made in the last 3 years

Three aspects of lethargic tests

 1) Deepen the existing ditches on the piece base

2) Experiment/invest in new drivers of water revenue growth

3) They are trying to completely destroy the future of the industry

Succession planning score

Softer aspects that help build “institutions”. Four aspects of the success test:

1) Decentralized execution

 2) Quality and tenure of the company’s CXO

3) Evidence of CXO succession implementation in the past.

4) The Board of Directors Independence


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.

Fund Managers

Rakshit Ranjan

Director, Institutional Equity Research

Rakshit worked for six years (2005-2011) at Lloyds Bank ( Rakshit Ranjan director of institutional equity research) and Noble Execution (lead sector analyst). For the past six years, it has been ranked among the top three mid-sized stocks by UK insurance analysts (Survey by Thomson Reuters Extel).

Since 2011, Rakshit has led Ambit Capital’s consumer research franchise and ranked #1 in Consumer Discretionary and Top 3 Consumer Goods list in 2015 and 2016. He launched Ambit’s Coffee Can PMS in March 2017 and managed it till December 2018. Under his leadership, Ambit’s Coffee Can became PMS is one of the best stock products in India in 2018.

Rakshit Ranjan

Director, Institutional Equity Research

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 obtained a BSc in Economics (First Class Honours)and a Master’s degree in Economics (Honours in Macro and Microeconomics). Based in London, Saurabh is the co-founder of Clear Capital and was rated as one of the best small-cap analysts in the UK by Extel in 2007. In India, Saurabh was rated as the best equity strategist in 2015, 2016 and 2017 by Asiamoney surveys. Prior to founding Marcellus, Saurabh was the CEO of Ambit Capital. 

Saurabh is a CFA Chartered and SEBI Registered Investment Adviser. In 2017, he joined the Mutual Fund Advisory Committee of SEBI at the invitation of SEBI. In 2019, Saurabh was part of the expert committee formed by SEBI to update and improve PMS regulations. Saurabh has written four best-selling 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 at Peak Potential” – and is a Fellow of the Royal Society of Arts.

Saurabh Mukherjea

Founder and Chief Investment Officer

Pramod Gubbi


For the last two years of his 8-year tenure at Ambit Capital, Pramod was Managing Director and Head of Institutional Equities (from 2016 to 2018).

Prior to Pramod, he served as head of Ambit’s Singapore office from 2013-2016. Prior to joining Ambit, Pramod worked across trading and research functions at Clear Capital, a UK equity research firm. Pramod is the Head of Sales at Marcellus and oversees the company’s sales and marketing efforts. He also sits on the investment committee, which discusses and approves the company’s investment strategies. 

Apart from being a technology analyst, Pramod has served technology companies like HCL Technologies and the Indian arm of Philips Semiconductors in Business Development and Engineering.

Qualifications: Pramod holds CFA status with B.Tech from Regional Engineering College, Surathkal and Post Graduate Diploma in Management from Indian Institute of Management – Ahmedabad.

Pramod Gubbi


Book For a Call

book a call with our team

our team of experts  at athworth will guide you towards better invest opportunities available in the market.

By submitting this form, you give athworth advisors private limited permission to call or email you.