Rising Giants PMS

Rising Giants PMS : High-quality mid-sized companies have been amongst the biggest wealth creators in Indian equities over the last 3, 5, and 10 years. Marcellus Rising Giants PMS intends to identify and invest in such high-quality mid-sized companies (typically less than INR 75bn market-capitalization, predominantly in the INR 7 to 75bn range) with 1) Well moated dominant franchises in niche segments; 2) A track record of prudent capital allocation with high reinvestment in the core business and continuous focus on adjacencies for growth; and 3) Clean accounts and impeccable corporate governance.

From a universe of ~450 companies in this segment, a portfolio is constructed of 15-20 companies which make it past Marcellus’ proprietary forensic accounting & capital allocation filters as well as our bottom-up stock selection & position sizing framework.

https://marcellus.in/portfolio-management-services/marcellus-rising-giant-pms/ (presentation & fee structure shared here)

Fee Structure:

Direct:

Performance Fee (where applicable)

1. Phase I - If the appreciation in the pre-tax NAV (before charging performance fee) is above the 6% p.a. hurdle rate of return: 10% with no catch-up2. Phase II - If appreciation in the pre-tax NAV (before charging the performance fee) is above the BSE500 TRI rate of return for the relevant performance period, then the Investment Manager shall be entitled to an additional performance fee of 5%.

Partner:

Performance Fee (where applicable):

1. Phase I - If the appreciation in the pre-tax NAV (before charging the performance fee) is above the 6% hurdle rate of return: 10% with no catch-up

2. Phase II - If appreciation in the pre-tax NAV (before charging the performance fee) is above the BSE500 TRI rate of return for the relevant performance period, then the Investment Manager shall be entitled to an additional performance fee of 5%

Exit Load:

For RGP, there is no exit load.