Marcellus Curation-I

Marcellus Curation I follows a long only Indian equities strategy built on the philosophy of quality over quantity and in depth bottom up research to identify clean and high quality compounders capable of delivering consistent free cash flow growth. The investment approach focuses on companies with strong competitive advantages, prudent capital allocation and capable management with emphasis on longevity of cash flows and sustainable earnings growth. The investment universe begins with stocks in the BSE 500 and applies a structured multi stage screening process. A forensic accounting screen removes companies with accounting or governance concerns using multiple accounting ratios related to cash flow quality, provisioning, contingent liabilities and auditor behaviour. Remaining companies are evaluated using fundamental parameters such as revenue growth and return on capital employed to identify cash generative franchises that are scaling rapidly. The shortlisted companies undergo extensive bottom up research including analysis of annual reports, stakeholder discussions and independent third party channel checks to validate management claims and governance standards. Portfolio construction typically results in a concentrated portfolio of around twenty to twenty five companies selected from a wider research coverage universe that clears the proprietary research filters. Sector agnostic and combination of large cap, mid cap and small cap.