Changes made to the Rising Giants portfolio In the recent months Marcellus Investment Managers has made the following additions to the Rising Giants portfolio portfolio.
Marcellus’ Rising Giants portfolio
Marcellus’ Rising Giants portfolio (RGP) aims to discover companies with a high probability of entry into benchmark Nifty 50 index over the next 3-5 years thus capturing the outsized returns that typically accrue to potential Nifty50 entrants. The long-term prospects of the portfolio is strong on account of: (a) healthy reinvestment undertaken in FY22 & FY23 to further strengthen their franchises; (b) current valuations signalling the stock market’s underappreciation of RGP’s longevity of compounding; and (c) historical evidence of strong share price returns post periods of weakness.
A key objective of the Rising Giants portfolio is to discover potential entrants into the Nifty50
Indian midcap companies en route to entering the Nifty 50 index can be a lucrative investment for investors looking to avoid the volatility associated with small cap companies. In the three-year run-up to entering the BSE 500, these potential entrants outperform the index by 24% CAGR with the margin of outperformance increasing as they get closer to entering the benchmark index.
Identifying such companies who have set on the exponential free cash flow compounding and hence impending entry in Nifty 50 over the next 3-5 years is one of the key objectives of our Rising Giants strategy.
Latest Rising Giants portfolio
|STOCK||CMP (Rs)||YTD Return|
|Dr. Lal PathLabs||2697.2||23|
|L&T Technology Services||4450||20|