The fund slipped -8bps, reducing our YTD gain to +2.11%
April was frustrating. While our Hong Kong names did well and India, as I had hoped, came back strongly, we suffered heavily from the surge in the dollar, giving up roughly half our gains in our long yen position. Weakness in Fanuc after some poor earnings, and a sharp sell-off in Sberbank following the latest round of Russian sanctions, compounded our problems. I had lifted half our JPY forward position around 104.60 ,but was too eager to put the position back on, and did so around 107. In the event with the JPY testing 110 this cost-3.45% on a mark to market basis for the month.
The Tantallon India Fund closed up +3.20% in April, after expenses.
The headlines remain feverish: from hand-wringing on US$ strength (or not!), to the mind-numbing rhetoric across every conceivable media platform on protectionism, retaliatory tariffs, customs unions, energy prices, non-trade sanctions on corporations/individuals, and potential peace treaties, to the hyper-sensitivity in equity, fixed income and currency markets to data that might (or not!) re-enforce views on the ‘gradual’ tightening of monetary policy globally.
April continued on a downward trend making for a third consecutive month of declines. The main reason for the drop was the strengthening in the USD against a majority of currencies including our holdings in Japan, Taiwan, Korea and Europe.
Technology went through a roller coaster month of result releases coupled with one direct effect from the trade tensions.
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$38 million
YTD results : +2.11%
Lifetime results : +149.01%
Current AUM : US$38 million
YTD results :-7.41%
Lifetime results :+39.14%
Current AUM : US$14 million
YTD results :-5.0%
Lifetime results :+18.2%
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.