Stage 01 · Screen
Discover
Define the universe.
Start with the listed Indian market and define the universe of businesses that can be considered. Nothing is bought at this stage — it simply determines what enters the investment process.
The route
Five decisions.
One process.
Each stage answers a different question, and a business only advances when the evidence supports the next decision. Nothing skips a stage, and nothing is bought because it is interesting.
Stage 02 · Quality
Earnings
Buy strength in earnings.
Quality defines the universe. We begin with businesses showing durable growth, improving profitability, and strong underlying economics. From there, the universe narrows to those with the fundamentals to support a lasting trend.
Not famous names. Strong businesses.
The goal is simple: find businesses whose underlying strength can support a sustained trend.
Stage 03 · Momentum
Price
Buy strength in price.
Momentum captures the timing. A good company need not be a good stock, so the market has to agree before we act. We measure relative price strength against the BSE 500 across short-, medium- and long-term horizons, while looking for stocks making higher highs and higher lows. Sector strength provides another layer of confirmation. All three timeframes must align. Quality tells us what to own; Momentum tells us when to own it.
Stage 04 · Construct
Allocate
Allocate with conviction and discipline.
Position sizes reflect conviction, liquidity and portfolio context. Stronger opportunities can receive greater weight, while liquidity and existing exposure help manage concentration and portfolio risk.
Stage 05 · Discipline
Exit
Sell when strength breaks.
Discipline protects the portfolio. An exit triggers when Quality deteriorates — Sales growth turns negative, Profit growth decelerates against the benchmark, or ROE falls — or when Momentum breaks, with a new short-term lower low or a decisive break of the long-term uptrend. Either condition is enough; both are not required. The full position is exited rather than partially held, and capital can rotate into emerging strength.
On disclosure. The two filters at the heart of stages 02 and 03 are described on the Philosophy pages. What the filters measure, how the measurements are weighted and where the thresholds sit are the firm's own work and are not published.
Exposure
Where the money currently sits.
20.9%Metals & Mining
Metals & Mining
20.9%
Banks - Private Sector
19.9%
NBFC
15%
Defence
7.9%
Banks - Public Sector
7.7%
Finance - Housing
4.7%
Engineering
4.5%
AUTO
4.3%
Jewellery
3.9%
Capital Markets
3.9%
Wires & Cables
3.7%
Power Generation And Supply
3.5%
Quality defines what we own. Momentum tells us when to own it. Discipline — the rules-based exit — is what separates Marathon Trends from every buy-and-hold fund that rides its leaders all the way down.