Marcellus Rising Giants

What Is Marcellus Rising Giants?

Marcellus Rising Giants is a concentrated small- and mid-cap equity strategy from Marcellus Investment Managers that holds 15–20 high-quality companies it believes can become tomorrow's market leaders, chosen for clean accounting, disciplined capital allocation and strong competitive advantages. Running since 16 August 2021 and managed by Ashvin Shetty, it is offered as a PMS and as an open-ended Category III AIF, is benchmarked to the BSE 500 TRI, and managed ₹82.30 crore in its PMS as of 31 August 2026.

The AIF route requires ₹5 crore for new investors (₹1 crore for existing Marcellus clients), with a 15-month lock-in. Smaller companies can grow faster but are more volatile and less liquid than large caps, so the strategy suits investors with a long horizon and a high tolerance for drawdowns.

Marcellus Rising Giants Snapshot

Marcellus Rising Giants Performance

Marcellus Rising Giants PMS returned -0.10% annualised since inception to 31 August 2026, against 11.50% for the BSE 500 TRI, and -2.18% over one year against 4.72%, as reported to APMI. It has led the benchmark over the last six months but trailed it over one, three and four years.

As on 31 August 2026. Source: APMI (PMS). TWRR; periods over one year annualised. AIF returns may differ. Past performance does not indicate future returns. Compare strategies on ALTPORT's PMS performance page.

Small- and mid-cap strategies can underperform for long stretches even when their companies keep executing, so performance should be read alongside valuations, earnings growth and the length of the holding period.

Marcellus Rising Giants Investment Strategy

Marcellus Rising Giants narrows about 450 Indian companies with market caps of US$500 million to US$10 billion down to 15–20 holdings through forensic accounting, fundamental filters and bottom-up research.

1. Universe: about 450 listed companies in the US$500 million–10 billion range.
2. Forensic accounting screen: companies with poor accounting quality are removed.
3. Fundamental filters: tests of sustained revenue growth, return on capital and reinvestment rates.
4. Bottom-up research: detailed analysis, management meetings and third-party channel checks.
5. Portfolio: 15–20 Rising Giants.

It looks for well-governed companies with clean books that are well-defended leaders in niche, underpenetrated markets and have a record of reinvesting heavily in their core business while expanding into related growth areas. Sector weights result from stock picking, not a fixed allocation.

How Marcellus Selects Stocks for Rising Giants

Marcellus Rising Giants judges a company's quality before its growth, using three pillars: clean accounting, capital allocation and competitive advantage.

Clean accounting: Marcellus ranks companies on forensic accounting ratios across six years of consolidated financials, drawing on Howard Schilit's Financial Shenanigans, to check cash generation, balance-sheet quality and whether reported earnings are real. This matters more in small caps, where disclosures can be thinner.

Capital allocation: Marcellus looks at how management deploys cash across growth, acquisitions, dividends and debt reduction. Companies that reinvest at high returns have a longer compounding runway.

Competitive advantage: brands, customer relationships, distribution, specialised capabilities, technology or cost advantages that can protect the business as it grows larger.

Marcellus Rising Giants: PMS vs AIF

Marcellus Rising Giants is offered through a PMS, where shares are held in the investor's own account, and through the Marcellus Rising Giants Fund, an open-ended Category III AIF.

Investors comparing structures can read mutual fund vs PMS vs AIF.

Marcellus Rising Giants Fees, Lock-in and Exit Load

Marcellus Rising Giants offers three fee models, a 15-month lock-in from each contribution and a 2% exit load for withdrawals within that lock-in.

Performance fees may be subject to a high-water mark. The cost of each model depends on returns, so compare them over your expected holding period. See ALTPORT's guide to AIF fees and charges. Confirm all terms in the PMS agreement or AIF documents.

Who Should Invest in Marcellus Rising Giants?

Marcellus Rising Giants suits HNIs and UHNIs who meet the minimum, have a horizon of at least three to five years, ample liquidity elsewhere, and want a dedicated small- and mid-cap allocation alongside a diversified core portfolio. It suits investors who can sit through deep drawdowns and long periods of underperformance, not those seeking short-term gains. Investors can also compare ALTPORT's small-cap PMS options.

Marcellus Rising Giants Risks

The main risks of Marcellus Rising Giants are small- and mid-cap volatility, liquidity, concentration, valuation, lock-in and business risk.

Small- and mid-cap volatility: Smaller companies swing more sharply, especially in market stress.

Liquidity risk: Lower trading volumes can make exits slow or costly.

Concentration risk: With 15–20 holdings, a few declines can hit overall returns.

Valuation risk: A strong business bought at too high a price can still disappoint.

Lock-in risk: Money is tied up for 15 months, with a 2% exit load inside that period.

Business and governance risk: Smaller firms face more business-model, governance, regulatory and capital-allocation challenges.

How to Invest in Marcellus Rising Giants through ALTPORT

Investing in Marcellus Rising Giants through ALTPORT starts with understanding the strategy, its fees, lock-in and fit with your existing allocation, then choosing the PMS or AIF route, completing KYC, reviewing the agreement and funding the investment. Marcellus also offers Marcellus Consistent Compounders and the Marcellus Global Compounders Fund. Speak to an ALTPORT advisor to explore your options.