Saurabh Mukherjea using market rally to hoard cash in smallcap portfolio. Will it pay off?
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As small-cap and mid-cap stocks rallied in March, Saurabh Mukherjea took the opposite route—raising cash and trimming exposure. The Marcellus Investment Managers founder, who has been steadily increasing cash levels in his small-cap-heavy Little Champs portfolio from 3% in June 2024 to 17.5% by February 2025, said he has been using the recent market pullback to further ramp up his cash position. “Given our concerns about small- and mid-cap valuations in general, along with a deceleration in earnings, we anticipate further correction in this space,” Team Mukherjea told investors in a communique. “Past precedents show that good-quality stocks do fall during periods of market slowdown—hence, cash will provide some mitigation against these declines. Secondly, we will also have the opportunity to nibble at good-quality stocks that can stage a strong comeback once the dust settles,” he said. Also read | My life littered with failures: Saurabh M...