The fund declined -1.59%, reducing our year to date advance to +28.39%. Regional indices were modestly weaker.
On the positive side our milk exposure contributed handsomely again this month, as A2Milk continues to re-rate and our more recent Indian acquisition Heritage Foods climbed sharply despite reporting weak numbers following the acquisition of Reliance Dairy; this dragged operational performance, although topline growth of 22% in milk and 21% in value-added product gives some indication of the demand dynamic. In aggregate our dairy exposure added +1.8% to NAV.
The Tantallon India Fund closed down -1.47% in August, after expenses. No question, we face uncertainty – from bellicose rhetoric invoking fire and brimstone in the face of North Korean provocation, posturing over the debt ceiling limits in Washington, and two extraordinarily damaging hurricanes (that might well impact US domestic output enough to give the Fed some pause as they ‘normalize’ monetary policy), to (increasingly) strident postulation on “haven” currencies and gold, (increasingly) acrimonious Brexit negotiations, and (increasing) confusion on ECB tapering, and Chinese measures to clamp-down on shadow banking, excessive domestic leverage, and currency outflows.
We are publishing our first regular monthly portfolio comment with the fund entering its 9th month since inception. August registered solid gains of 1.8% and the fund rose for the 7th time in 8 months. While tech has shown increasing volatility during the summer, the trend has remained positive. Meanwhile the sustainability component of the portfolio has been supported by announcements of aggressive electric vehicle roll-out plans throughout the summer.
Outlook: The big question for the tech sector right now is whether it can sustain its positive momentum (absolute and relative) through the spring of 2018. In other words, is it possible for tech to help sustain a rising market AND outperform it?
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$33 million
YTD results : +28.39%
Lifetime results : +128.48%
Current AUM : US$26 million
YTD results :+36.31%
Lifetime results :+28.72%
Current AUM : US$11 million
YTD results :+10.4%
Lifetime results :+10.4%
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.