The fund rose +12.98%, taking our year-to-date gain to +33.6%. This is a new high watermark for the fund and we are accruing fees.
Despite drags from our positions in the UK (principally Norilsk Nickel, the last of our Russian names), Australia (Mesoblast, which we have sold, and Pengana) and lackluster performance from our Japanese names, the fund was bolstered by the continuing surge in our US ADR names, which added a cumulative +6.7% to NAV, lead by new highs in SEA and JD.com, and a sharp move higher in Kingsoft, the cloud spin-off from Kingdee in Hong Kong (a somewhat counter-intuitive move to Nasdaq at a time when most Chinese names are re-listing in Hong Kong). In Hong Kong itself, despite the grim political backdrop, the market predictably surged, and our holdings in Hong Kong Exchange and Xinyi Solar registered sharp advances. In the Philippines our two small holdings in Bloomberry and Manila Water also boosted performance. In total our equity book added +10.5%, our futures cover (net was 76% on average as we slowly began to lower our exposure) contributed +55bps, and FX a further +2%, dominated again by gains in the NOK and the AUD.
These are extraordinary times; we hope that you and your families are healthy and safe.
The Tantallon India Fund closed up +7.73% in June, another volatile month as markets oscillate between bouts of anxiety over surging COVID infections/ hospitalizations potentially requiring prolonged ‘shutdowns,’ and hopes that massive liquidity infusions by global central banks would sustain asset values and anchor a constructive look-through to ‘normalization’ in 2021.
The fund rose 11% in June to move into positive territory for the year. We participated in the continued tech and sustainability rally which is leading the global markets higher. We also benefited from the continued China rally which also lifted the Hong Kong market despite significant political change.
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$35 million
YTD results : +33.57%
Lifetime results : +152.72%
Current AUM : US$18 million
YTD results :-17.95%
Lifetime results :-2.00%
Current AUM : US$13 million
YTD results :+11.3%
Lifetime results :+29.6%
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.