Marcellus Investment Managers’ Little Champs portfolio of smaller cap companies has increased its cash position from 5 percent in December 2024 to 13 percent in February in 2025, as per data shared by PMS Bazaar.
The PMS fund by Saurabh Mukherjea has also increased its cash holding in the Rising Giants portfolio of quality midcaps from 12 percent to 16 percent, and cash position in the Consistent Compounders Portfolio was raised from 0.3 percent in December to 2.8 percent in February. Consistent Compounders PMS invests in a portfolio of heavily-moated companies with potential for earnings growth over the longer period.
As per a newsletter shared by Marcellus with investors in February, the higher cash call is to mitigate risk and keep liquidity to deploy money in quality stocks once they see sharp fall in share prices.
The PMS expects a mean revision in Nifty 50 EPS growth in the future, the newsletter said, adding that it is unlikely for Nifty 50 EPS CAGR over FY19-24 to sustain further.
"With India’s nominal GDP growth rate hovering around the 10-12 percent mark, fundamentals of the broader stock market are not likely to be more than 2-3 percent points higher than the economic growth rate," said the newsletter. Marcellus said after delivering an EPS CAGR of 24.3 percent over FY21-24, there will be a mean reversion for the Nifty 50’s EPS growth.
Entrants/Exits in Portfolio
The PMS has added L&T Technology Services to its Little Champs portfolio in the Februrary.
The letter also mentions that the hyperactivity in capital markets seems to be slowing, reflected in CDSL's lowest client additions in 9 months, and a decline in SIP account additions. As a result of this, Marcellus has pulled out from its capital market stocks, where it had an exposure of 0.5 percent via Kings of Capital Portfolio.
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