Unlocking Wealth: Saurabh Mukherjea's Investment Moves

About

Marcellus Investment Managers' founder & Chief Investment Officer
One can say that the London School of Economics was Saurabh Mukharjea's economics teacher. He earned a first-class honours bachelor's degree in economics as well as an MSc in economics with distinction in macro- and microeconomics. 
Co-founder of Clear Capital in London, Saurabh Mukharjea was recognized as one of the UK's top small-cap analysts in 2007 by the Extel Survey. Saurabh was India's leading stocks strategist in 2015, 2016, and 2017, according to Asia Money Surveys. Saurabh was the CEO of Ambit Capital before to starting Marcellus. There is no need to introduce Saurabh Mukharjea in the BSE, NSE, or indexes like Nifty50.

The Journey

He founded Marcellus Investment Managers and serves as its chief investment officer. The London School of Economics is where Saurabh received his education. He graduated with a BSc in Economics with First Class Honours and an MSc in Economics with distinction in Macro & Microeconomics. 
Saurabh co-founded Clear Capital in London, and the Extel Survey named him one of the UK's best small-cap analysts in 2007. According to Asiamoney surveys, Saurabh was India's top equities strategist in 2015, 2016, and 2017. Before founding Marcellus, Saurabh led Ambit Capital as CEO. Saurabh is a founding director of the trade association in India called the Association of Portfolio Managers.
He remains a member of many working groups of SEBI, whose job it is to examine and revise the regulations controlling portfolio management in India.

Saurabh Mukherjea Portfolio – Marcellus PMS

PMS Product Performance

(Source: pmsaifworld)

His Investment Philosophy

Robert G. Kirby, an investment manager and author. He worked in the investment industry and shared his insights through writings. His notable philosophy, as indicated in the text, involves a criticism of the prevailing short-term focus in professional money management.

Robert G. Kirby advocated for a long-term investment approach, as reflected in his "Coffee Can" portfolio concept. In this concept, he suggested that a portfolio of carefully chosen stocks should be left untouched for an extended period (e.g., 10 years), aiming to reduce transaction costs and encourage a more patient, investor-oriented strategy.

In 1984, investment expert Rob Kirby shared a notable story in the Journal of Portfolio Management about a client's husband who followed Kirby's advice. The gentleman purchased stocks recommended by Kirby in $5000 increments but deviated from Kirby's strategy by holding onto them without selling. Over the next decade, this unconventional approach resulted in significant wealth creation, primarily due to the transformation of one position, Xerox, into a holding worth nearly $1 million. Kirby termed this strategy the "Coffee Can Portfolio," emphasizing the idea of investing in excellent companies and holding onto them for an extended period. This approach proved powerful in generating substantial returns over time.

In conversation with Saurabh Mukharjea

Question - Mr. Mukherjea, could you provide insights into the recent changes in Marcellus Investment Managers' portfolio and the rationale behind selling Amrutanjan Health Care Ltd. while adding RHI Magnesita India and Cera Sanitaryware?

Answer - Certainly. In response to the evolving market dynamics, we've actively adjusted our portfolio. We recently sold Amrutanjan Health Care and added RHI Magnesita India and Cera Sanitaryware. The decision-making process involves a thorough assessment of the market conditions and the potential for growth in specific sectors.

Question - You mentioned the success of Tata Group's retail firm, Trent Ltd. What factors drove your investment decision in Trent Ltd, especially with the inclusion in the Nifty Next 50 Index?

Answer - The Trent Ltd. inclusion in the Nifty Next 50 Index reflects its strong performance and growth potential. We've been building a position in Trent over the last 10 weeks, driven not only by the successful turnaround of the Zudio but also by the profitability of the Star Bazaar in recent months. The Nifty Next 50 Index inclusion further validates our positive outlook on Trent.

Question - How do you view HDFC Bank Ltd. long-term earnings growth, considering its stagnant returns in the past three years?

Answer - Despite the recent stagnant returns, we maintain confidence in HDFC Bank's long-term earnings growth. Our optimism is grounded in a belief in the bank's ability to perform well in the future, and we continue to hold a positive outlook on its overall performance.

Question - What are your thoughts on V-Mart's challenges in the retail sector, particularly concerning online competition, and how do you see its prospects during the festive and wedding seasons?

Answer - V-Mart Retail Ltd has faced challenges in the retail sector, especially from online competition. However, we remain hopeful about the brand's revival, particularly during the festive and wedding seasons. While the company has experienced a net loss in the September quarter, we believe in its potential for recovery.

Question - Marcellus Investment Managers emphasizes the importance of patience and a deep understanding of companies in small-cap investing. Could you elaborate on this approach, especially when addressing issues faced by companies?

Answer - Patience and a deep understanding of companies are crucial in small-cap investing, especially when management teams are addressing issues. It involves a thorough analysis of the challenges faced by companies and a belief in their ability to overcome those challenges over time. This approach aligns with our commitment to long-term value creation.