Marcellus Investment Managers, founded by Pramod Gubbi and Saurabh Mukherjea, has been a prominent player in the Indian financial market. However, recent reports suggest that the firm has been facing challenges, particularly in the face of market volatility and redemptions.
Saurabh Mukherjea's Marcellus Investment Managers has seen redemptions close to Rs 966 crore in March from its Consistent Compounders fund, indicating a loss of investor confidence in the firm's performance. This poses a significant setback for the company, as it strives to maintain its reputation as a top-performing fund manager.
Rakshit Ranjan, Investment Management at Marcellus Investment Managers, acknowledges the uncertainty in the market and emphasizes the importance of taking a long-term perspective. Despite initial signs of recovery, the firm is bracing for further challenges as economic conditions remain unpredictable.
Pramod Gubbi, a founder of Marcellus Investment Managers, says 'it's unprecedented partly because there is a structural move towards quality and growth investing, which is a departure from the traditional value investing approach. This shift in investment strategy reflects the evolving needs of investors and the changing dynamics of the market.
The PMS fund manager projects a nominal GDP growth rate of 10-11% over the next decade, providing a strong foundation for corporate earnings. While this outlook seems promising, the current market conditions present a different reality, with outflows and negative alphas affecting Marcellus Investment Managers' performance.
Markets have seen a volatile few weeks as investors dumped mid-and small-cap stocks amid concerns raised by regulators. This has further exacerbated the challenges faced by Marcellus Investment Managers and other fund managers in navigating the turbulent market landscape.
Despite these obstacles, Saurabh Mukherjea remains optimistic about the potential for growth in the Indian market. He emphasizes the unique opportunities presented by India's economic landscape, highlighting the country's unparalleled growth trajectory compared to other markets.
The markets are not fully priced in, especially during significant events like elections, according to Saurabh Mukherjea. This sentiment underscores the need for caution and strategic decision-making in the face of market uncertainties, a principle that Marcellus Investment Managers continues to uphold.
Top 20 PMS funds see outflows of Rs 3400 cr in FY21, with Marcellus Investment Advisors ranking as one of the worst performers with a -14% alpha. This data highlights the challenges faced by fund managers in generating positive returns amidst market turmoil.
Saurabh Mukherjea, 48, founder and chief investment officer of Marcellus Investment Managers Pvt. Ltd, remains confident in the firm's long-term prospects. Despite the current setbacks, he sees potential for growth and success in the future, driven by a commitment to quality investing and strategic decision-making.
