About Company
Marcellus Investment Managers Pvt Ltd
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.
What Is Marcellus Consistent Compounders PMS?
Marcellus Consistent Compounders (CCP) is a concentrated equity Portfolio Management Service (PMS) from Marcellus Investment Managers that holds about 20 high-quality Indian companies chosen for clean accounting, disciplined capital allocation and durable competitive advantages, aiming to compound earnings over many years. Launched in 2018 and managed by Rakshit Ranjan, it requires a minimum investment of ₹50 lakh, has no entry load, exit load or lock-in, and offers fixed, variable and hybrid fee options.
Rather than starting with popular stocks and looking for reasons to buy them, the process first removes companies with questionable accounts, governance or capital allocation. It suits long-term investors comfortable with the ups and downs of a concentrated portfolio.
Marcellus Consistent Compounders Snapshot
| Particular | Details |
|---|---|
| Portfolio Manager | Marcellus Investment Managers |
| Strategy | Concentrated equity PMS – quality compounders |
| Fund Manager | Rakshit Ranjan, CFA |
| Launched | 2018 |
| Benchmark Used in Disclosures | Nifty 50 TRI |
| Minimum Investment | ₹50 lakh |
| Portfolio | ~20 stocks from a ~50-stock investable universe |
| Investment Horizon | Long term |
| Fee Options | Fixed, variable or hybrid |
| Entry Load / Exit Load / Lock-in | Nil / Nil / None |
| Core Framework | Forensic accounting + capital allocation + competitive advantage |
Marcellus Consistent Compounders Investment Strategy
Marcellus Consistent Compounders builds its portfolio in two stages: quantitative filters narrow the market to an investable universe of about 50 high-quality companies, then bottom-up research picks about 20 with the most durable competitive advantages.
The filters are refreshed annually, while companies in the portfolio and universe are monitored continuously through primary and secondary research. Three ideas shape the approach:
Concentration: a small number of high-conviction holdings, so each stock can meaningfully affect returns, good or bad.
Enterprising compounders: businesses that earn high returns on capital and can keep reinvesting cash at those returns. A company that earns well but cannot reinvest eventually hits a growth ceiling.
Intellectual assets: a growing focus on businesses whose profits come from technology, brands, processes and other intangibles, which can grow earnings without a matching rise in physical assets.
How Marcellus Selects Stocks: Three Pillars
Marcellus Consistent Compounders selects stocks only after they pass three tests in order: clean accounting, sound capital allocation and a durable competitive advantage.
Clean Accounting
Marcellus Consistent Compounders first checks whether a company's numbers can be trusted, using 12 forensic accounting ratios applied to six years of consolidated financials. The ratios look for revenue or earnings manipulation, misstated assets and liabilities, cash leakage and weak audit quality, and were inspired by Howard Schilit's book Financial Shenanigans. Companies are ranked on each ratio and the ranks combined into a single accounting-quality score; poorly ranked companies are excluded.
Capital Allocation
Marcellus then looks at what management does with the cash the business generates. The best compounders combine high returns on capital with intelligent reinvestment of free cash flow into growth; cash hoarding or diversification into unrelated businesses is a warning sign.
Competitive Advantage
Finally, Marcellus looks for barriers to entry – pricing power, brands, customer relationships, processes or strategic assets – strong enough to protect profits for years, not just today.
The Marcellus Longevity Framework
Marcellus Consistent Compounders judges how long a company can keep compounding by scoring it on four measures.
| Measure | What It Tests |
|---|---|
| Free cash flow growth | Revenue growth, return on capital, reinvestment rate, industry demand and expected market-share and margin gains |
| Moat score | Strength of pricing power: could a rival offering a product a third cheaper hurt the company's profits or share? |
| Lethargy score | Over the last three years, has the company deepened its moats, invested in new moated growth drivers and tried to reshape its industry? |
| Succession score | Decentralised execution, quality and tenure of senior managers, past CXO succession and board independence |
Marcellus Consistent Compounders Portfolio Characteristics
Marcellus Consistent Compounders holds about 20 companies across sectors, without fixed sector weights. It has recently broadened beyond its historical concentration in large-cap consumer, financial and IT services stocks, adding more exposure to healthcare, auto components and export-led manufacturing.
Quality does not mean owning the same stocks forever. Marcellus sells when:
- Its view of a company's competitive strength or longevity weakens.
- A new, higher-conviction stock is added and the portfolio needs to stay concentrated.
- Rebalancing is needed to match position sizes to relative conviction.
Marcellus also engages with promoters on governance, succession and capital allocation, and will exit if concerns are not addressed within about six months.
Marcellus Consistent Compounders Fees, Exit Load and Minimum Investment
The minimum investment in Marcellus Consistent Compounders PMS is ₹50 lakh, with no entry load, exit load or lock-in, and three fee models.
| Fee Model | Regular Plan | Direct Plan |
|---|---|---|
| Fixed only | 2% a year | 1.5% a year |
| Variable only | 20% of profits above an 8% hurdle | 20% of profits above an 8% hurdle |
| Hybrid | 1% + 15% of profits above a 12% hurdle | 0.75% + 15% of profits above a 12% hurdle |
Performance fees are subject to a high-water mark. Which model costs less depends on returns: a performance fee costs more in strong years and less in weak ones than a fixed fee. Confirm the terms in the PMS agreement.
Marcellus Consistent Compounders Performance
Marcellus Consistent Compounders publishes its performance against the Nifty 50 TRI, net of fixed fees, expenses and performance fees charged up to the quarter-end; periods under a year are absolute and longer periods annualised. When judging returns, also look at the time period, drawdowns and periods of underperformance, fees, valuations and how the portfolio has changed. Past performance does not indicate future returns. Compare strategies on ALTPORT's PMS performance page.
Who Should Invest in Marcellus Consistent Compounders?
Marcellus Consistent Compounders PMS suits investors with at least ₹50 lakh and a long horizon who believe in quality-focused investing, prefer a concentrated portfolio over a diversified one, and can stay invested through long stretches of underperformance. It often fits HNIs who already have diversified equity through mutual funds and want a concentrated, professionally managed sleeve. Investors comparing options can browse the best PMS in India.
Marcellus Consistent Compounders Risks
The main risks of Marcellus Consistent Compounders are concentration, valuation, quality-bias, market and business risk; having no lock-in does not mean low risk.
Concentration risk: With about 20 stocks, a few weak holdings can hurt overall returns.
Valuation risk: Quality companies often trade at high valuations, and a fall in multiples can hit returns even when the business does well.
Quality-bias risk: The strategy can lag when cheaper or cyclical stocks lead the market.
Equity-market risk: Prices move with the economy, interest rates, liquidity, regulation, earnings and sentiment.
Business and governance risk: Moats can erode, management or capital allocation can change, and regulation can reshape industries.
Meet the Fund Manager: Rakshit Ranjan
Rakshit Ranjan, CFA, is the portfolio manager of Marcellus Consistent Compounders PMS and holds a B.Tech from IIT Delhi. The strategy follows the forensic-accounting-led investment philosophy of Marcellus founder Saurabh Mukherjea.
How to Invest in Marcellus Consistent Compounders through ALTPORT
Investing in Marcellus Consistent Compounders through ALTPORT starts with understanding the strategy, fees and how it fits your portfolio, followed by KYC, reviewing and signing the PMS agreement, and funding the account. Marcellus also offers the Marcellus Global Compounders Fund for international exposure. Speak to an ALTPORT advisor to explore whether it fits.
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Rakshit Ranjan
Rakshit Ranjan, CFA, is a Portfolio Manager at Marcellus Investment Managers, where he manages investments under the Consistent Compounders Portfolio Investment Approach and also contributes to mentoring the research team. Marcellus identifies him as part of its fund-management team. Rakshit has a professional background spanning UK equity research and Indian equity investing. He spent six years, from 2005 to 2011, covering UK equities at Lloyds Bank and Execution Noble. He subsequently led Ambit Capital's consumer research franchise before launching Ambit's Coffee Can PMS in March 2017, which he managed until December 2018. His academic credentials include a B.Tech from IIT Delhi and the CFA charter. His career combines equity research, sector analysis, portfolio management and fundamental investment research.
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Find answers to common questions about fund investments, performance, portfolio strategy, and investor services.
Marcellus Consistent Compounders is a concentrated equity PMS that holds about 20 high-quality Indian companies with clean accounts, disciplined capital allocation and durable competitive advantages.
Marcellus Consistent Compounders rests on three pillars – clean accounting, capital allocation and competitive advantage – aiming to own companies that compound earnings for many years.
Marcellus Consistent Compounders holds about 20 stocks, chosen from an investable universe of about 50.
The minimum investment in Marcellus Consistent Compounders PMS is ₹50 lakh.
Marcellus Consistent Compounders offers a fixed fee of 2% (1.5% direct), a 20% performance fee above an 8% hurdle, or a hybrid of 1% (0.75% direct) plus 15% above a 12% hurdle, with a high-water mark.
No. Marcellus Consistent Compounders has no lock-in, entry load or exit load.
Marcellus Consistent Compounders reports its performance against the Nifty 50 TRI.
Rakshit Ranjan, CFA, manages Marcellus Consistent Compounders PMS.
Marcellus Consistent Compounders screens companies on 12 forensic accounting ratios across six years of financials, covering earnings manipulation, balance-sheet accuracy, cash leakage and audit quality.
The main risks of Marcellus Consistent Compounders are concentration, valuation, quality-bias, market and business risk.
NRIs may be able to invest in Marcellus Consistent Compounders depending on residency rules and the PMS documents; confirm eligibility before investing. See ALTPORT's PMS for NRI guide.
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