THE TANTALLON FUND

Tantallon Fund since inception

 

The Tantallon Fund is a Cayman Island vehicle which invests in listed equities in the Asia Pacific region. The fund targets a concentrated portfolio of 35 names, with a 3-5 year investment horizon. At the portfolio manager’s discretion the fund may hedge its market and currency exposure, and short sell individual securities.

The Tantallon Fund: long only performance versus net return. Re-thinking our approach to the short side.

 In the 10 years since the fund’s inception the un-hedged long book of the Tantallon Fund has returned an annualised +12.2% compound. The net return is a significantly more pedestrian +7.2%. While the ability to go short protected the fund somewhat in the latter half of 2008, our experience since then, in the face of persistent intervention by regulators and central banks, has been consistently bitter. In mid-2012 we concluded that shorting was detracting from our ability to travel and research companies and resolved to discontinue the practice. However we saw little upside in surrendering the option and we retain the flexibility to hedge. An investor’s equivalent of the Hippocratic Oath, First, Do No Harm, is a discipline we have attempted, with modest success, to apply when looking at either market or individual stocks on the short book since then.

Tantallon Fund Chart

 

Long/Short Performance Since Inception

(Click on each month's data below to read the monthly pdf report)

 

  Return Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inception +106.15%                        
2017 +15.85% +2.69% +6.43% +6.00%                  
2016 -11.32% +13.28% -4.88% -14.59% +1.39% +0.26% -6.79% +0.20% +2.70% -0.26% +2.11% -4.30% +1.39%
2015 -3.01% +1.79% -4.91% +2.46% -5.89% +2.71% -1.05% +4.5% +8.99% -4.50% -6.25% -0.84% +1.12%
2014 +0.24% -2.28% +4.41% -5.08% -3.85% -2.91% +3.22% -3.84% -2.48% -0.50% +0.28%

+16.37%

-1.34%
2013 +20.14% +6.23% +5.97% +2.90% +3.62% -3.88% -5.55% +2.56% -0.05% -2.19% +1.86% +5.75% +2.08%
2012 -0.12% -0.87% -0.18% -1.47% -3.88% -4.03% -2.33% -0.20% -0.73% +5.81% +0.95% +2.81% +4.50%
2011 -9.85% -4.09% -1.64% +3.28% +3.93% -0.67% -1.51% +2.01% +0.47% +3.46% -6.24% -6.44% -2.16%
2010 -3.54% -7.08% -4.95% +4.06% +4.90% -7.24% -1.02% -0.17% -0.29% +9.24% +0.32% -2.51% +2.47%
2009 +29.45% -5.50% +4.43% -2.25% +3.46% +13.97% -0.12% +7.32% -1.34% -2.12% -1.45% +4.23% +7.03%
2008 -28.36% -5.72% +2.44% -0.05% -5.39% -1.33% -6.87% -6.65% -5.39% -4.17% +0.59% +0.07% +0.20%
2007 +20.24% +0.39% +4.60% +1.34% +0.05% +2.44% +4.19% +4.86% -0.38% +3.66% +4.35% -3.07% -3.40%
2006 +12.99% +4.20% -1.53% -0.93% +0.44% -1.93% +0.13% +1.02% -3.17% +0.26% +4.89% +6.89% +3.08%
2005 +22.75% -0.55% +3.77% -0.68% -1.45% +0.54% +1.92% +4.23% +0.87% +7.76% -4.00% +5.28% +3.56%
2004 +25.40% +5.80% +4.80% +4.60% -1.69% -2.67% -0.53% -1.42% -0.18% +5.42% +3.17% +2.41% +3.65%
2003 +2.00%                     -3.50% +5.70%

Latest Investment Report

Tantallon Fund, March 2017

The fund rose +6%, comfortably ahead of flat to marginally firmer regional indices, lifting our NAV to +15.85% for the year. For the 6th or 7th time- I’ve given up counting- since 2008, we breach our old high water mark, but as we are no longer charging performance fees (there having been neither performance nor fees) this is of purely forensic interest!

The long book returned +5.16%, and we made a (realized) gain of +84bps short JPY. Within the portfolio the single biggest contributor was Vallourec, which bounced back hard after February’s results-induced weakness, and added +1.42% to NAV. India in aggregate was the largest contributor, adding +2.55%, with notable strength in Kotak Bank, and new-comer Cox and Kings, an Indian travel operator with growing interests in hostels and private education initiatives which the market we believe is ignoring.

Read full report (pdf)

 

 

Last Three Months Reports (pdf)

 

For details and performance of our India Fund, please check our India Fund performance page.

 

Other News

Post card from Iran

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.

 

News from Ukraine

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.

Previous Performance Data & Reports


Tantallon Fund Details

Domicile/Corporate Structure:
Cayman Islands Master Feeder Fund
Established:
2003
Terms Currency:
USD
Minimum investment:
USD 1,000,000
Annual management fee:
1.5%
High water mark:
Yes
Valuations:
Monthly
Subscriptions:
Monthly
Redemptions:
Monthly w 30 day notice, 25% gate
Service providers
Administrator:

Portcullis Trust (Singapore) Ltd

Prime brokers/Auditors:

Morgan Stanley & Co. International plc /
PricewaterhouseCoopers LLP

Lawyers:
Maples & Calder
Shearman & Sterling LLP
Listings
Bloomberg:
TANTALF KY (offshore feeder)