MeritorQ Small cap

Fund Snapshot

Fund Purpose

To generate returns for the Investors through capital appreciation of the stocks held over a period of time. The objective of the Investment Approach will be to generate returns over the medium term, with a moderated volatility while primarily investing in listed equities and also investing in other permissible securities/products in accordance with the Regulations.

Fund Philosophy

Proprietary Forensic Accounting Filtration

The foundation of the investment approach relies on Marcellus' signature quantitative forensic framework. It systematically evaluates public data to weed out corporate governance outliers and companies with accounting red flags, instantly neutralizing high-risk profiles before portfolio consideration.

De-leveraged and Resilient Balance Sheets

The screening process strictly eliminates highly leveraged companies. By restricting the investable universe to enterprises with low or negligible debt levels, the strategy builds fundamental structural safety to survive broader liquidity tightenings.

Low-Risk Anomaly Optimization

The philosophy rejects the conventional narrative that higher risk yields higher rewards. Instead, it captures the "low-risk anomaly," building a portfolio of fundamentally safe, low-beta businesses that consistently generate superior compounded returns over the long term.

Strict Value and Relative Mispricing Metric

From a cleaned subset of profitable companies, the strategy applies disciplined rules to isolate stocks trading at sharp discounts to their intrinsic values or free cash flow potentials, capitalizing directly on erroneous market expectations.

Systematic, Discretion-Free Rebalancing

The portfolio eliminates human emotional errors, behavioral biases, or reliance on a "star fund manager." Instead, it executes a rigorous, rules-based rebalancing schedule to lock in profits from overvalued holdings and redeploy capital back into undervalued opportunities.