The fund rose +2.7%, against falls of between -50bps and -2.2% in the broad regional indices. We have a mountain to climb, but our long book (yes, we’re back to basics yet again) is beginning to find some traction, a process which has accelerated in the first week of September.
Overall our equity book added +1.15%. Principal detractors were Japan (-94bps) with M3 continuing to trade weakly, and Korea, where CJ CGV cost -47bps as the Koreans react to hostile rhetoric from the Chinese, unhappy with the US missile shield deployment, even as Dr Strangelove conducts significantly larger nuclear tests.
The Tantallon India Fund closed +1.66% in August, after expenses; the June quarter results season is behind us, bearing out our conviction that the corporate earnings cycle in India is inflecting higher in an environment where negative / historically low global interest rates have put a strong bid under higher yielding risk assets.
Our first year is in the books, with the Tantallon India Fund having posted a net US$ return of +9.74% since inception. We would like to take this opportunity to express a heartfelt “Thank You” to our seed investors; we are humbled by, and grateful to each one of you, for the confidence you have reposed in us, and for your unstinting support and encouragement. Onwards and Upwards!
There is so little information on Iran you cannot even find the Teheran Stock Exchange on Bloomberg. Yet this is an exchange with a market cap of US170billion, turning over up to US150m/day with zero foreign participation, entirely on the back of domestic mutual fund and retail investors.
In Lv’iv on the morning of my departure I attended the funeral of one of the casualties of the “anti-terrorist operation” in Donetsk. Loudspeakers relayed polyphonic chant from impressively hirsute Orthodox clergy to a cluster of old women and an honor guard, smoking furiously and in no mood to be photographed, waiting to transport the hearse the short distance from the altar to a waiting ambulance.
The Tantallon Fund commenced trading in November 2003 with US5.5m in assets.
In 2005 the Tantallon Fund was named Best Asian Hedge Fund and in 2006 Best Local Hedge Fund (Singapore)
We experienced explosive asset growth, with the fund soft-closing in October 2005 at US450million and hard-closing in January 2008 at US1.5billion. Peak assets, in all products, were US1.7 billion at the end of March 2008
During the financial panic of 2008 we waived 4 consecutive monthly gate-able events and re-paid US1.1billion to clients who needed liquidity, placing our client interests ahead of any business considerations.
The majority of fund AUM is currently internal capital.
Despite this extreme volatility in assets, our commitment to the business has not wavered.
Nick Harbinson and Alex Hill are the principals of Tantallon Capital Advisors, the advisory company to the Fund. We have known and worked with each other since 1990, and have between us over 60 years of investment experience in Asia. Experience in multiple market cycles has honed our ability to identify secular and cyclical economic trends, as well as catalytic triggers. We combine top-down macroeconomic themes with bottom-up stock picking, as well as complementary individual skills with deep sell and buy side industry experience and market knowledge.
Current AUM : US$25 million
YTD results : -10.27%
Lifetime results : +80.07%
Current AUM : US$16 million
YTD results :+9.48%
Lifetime results :+9.74%
In total, our principal investment team has over 80 years of experience in investing and financial markets. On average, our investment professionals have over 27 years of experience. The team today has weathered good times and bad times, bull and bear markets, staying together and remaining committed to our goal of achieving superior investment returns over the long term for our clients. Collectively, we are also significant investors in our funds. Our personal interests and those of our clients are completely aligned.