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
+152.72%
                       
2020
+33.57%
2019
-3.69%
2018
-19.44%
2017
+37.04.%
2016
-11.32%
2015
-3.01%
2014
+0.24%
2013
+20.14%
2012
-0.12%
2011
-9.85%
2010
-3.54%
2009
+29.45%
2008
-28.36%
2007
+20.24%
2006
+12.99%
2005
+22.75%
2004
+25.40%
2003
+2.00%
                   

Latest Investment Report

Tantallon Fund, June 2020

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.

Read full report (pdf)

 

 

Last Three Months Reports (pdf)

 

For details and performance of our other funds, please check:

The Tantallon India Fund

Tantallon Tech & Sustainability Fund

 

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)