The fund declined -3.84%, a fall of -10.27% year-to-date.
This ranks as one of our worst ever relative monthly performances. Our Indian names succumbed to a burst of profit taking, exacerbated by disappointing numbers from Larsen+Toubro, a substantial fine on Adani Enterprise’s gas subsidiary for “abuse” of its dominant position in gas distribution, and disappointment with Modi’s inaugural budget. In aggregate our India positions cost -4.24%. Gains in Japan and Singapore of roughly +150bps each, led by EUNetworks, Japan Air Terminals, DBS and Shimano, and 40bps of gains in both Indonesia and the Philippines reduced the loss on the long book to -66bps. In an effort to clear my head our short book was substantially unwound early in the month, at modest cost, but crucially I opted to retain the positions in the HK developers we have been running for the last 18 months on the grounds that clear pressure for higher rates, a firmer dollar and rising civil tension over Hong Kong’s future direction would make these low risk options to express one of my strongest convictions. Wrong again, as intimations of QE Chinese style, and a surge of Russian capital into HK$ assets sufficient to prompt intervention by the HKMA, saw this sector break out painfully and we have covered.
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. Together with John Mueller, our Tokyo-based analyst and director of research, we combine complementary individual skills with deep sell and buy side industry experience and market knowledge.
Current AUM : US$31 million
YTD results : - 10.27 %
Lifetime results : + 85.20 %
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.