New Product Launch - Marcellus MeritorQ: A quant-based offering from Marcellus.

“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price”
- Warren Buffet

Marcellus’ investment philosophy is to invest in companies with clean accounts and strong fundamentals at a price significantly below intrinsic value. We have encapsulated the essence of this approach through a rules-based strategy which seeks to identify quality companies that are relatively undervalued compared to others. Quality aspect is measured on multiple dimensions such as low financial leverage, clean accounts, and consistency of profitability.

Key features:
• Long only portfolio with a Quantitative fundamentals approach based on good investing principles.
• Holds 35-45 stock portfolio diversified across large, mid and small cap segment and factors (quality and value).
o ~55-60% allocation to small and mid-caps seen over back-tested history.
o ~32% allocation to top 5 stocks
o No allocation constraints on single stock or sectors as the objective is to select best companies which are both profitable as well as undervalued
• Roughly 50% annualized turnover observed across 16-year back-test period
• Avoids discretion in portfolio construction process
• Suitable for investors with more than 3 years investment horizon
• Minimum Investment of INR 10,00,000 (Rs 10 Lacs) under Advisory offering
• Minimum Investment of INR 50,00,000 (Rs 50 Lacs) under PMS offering
To Subscribe For MeritorQ Advisory offering -

We believe in saying it as we see it when it comes to communicating our investment philosophy. Alongside the weekly blogs and the monthly newsletters where we share with you openly our thoughts and beliefs around investments, we would like to help answer any questions on your mind that we may not have addressed in any of our communiques. If you are not receiving our blogs and newsletters, pls write to [email protected] and we shall make sure they reach you. You can also access all our past blogs, webinars and newsletters on our website

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. 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.

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