Pangolin Asia Fund April 2012 NAV

As at the 30th April 2012 the NAV of the Class A shares of the Pangolin Asia Fund was US$313.01 net of all fees and expenses, up 3.18% from US$303.35 in March. Please see the table at the end of this letter for further detail.

As of today, the fund is just about 84% invested with the split being approximately as follows:

Indonesia 31% Malaysia 38% Singapore 18% Thailand 13%

No names I’m afraid but details of the individual holdings are always available to investors on request.

Overview

In what was a bit of a soggy market, the fund’s largest three holdings all had appreciable gains. We estimate the fund’s weighted 2012 PE to be about 8x with a yield of close to 5%.

Outlook

Whenever I recommend a book or a film to anyone they’ve invariably read/seen it (and the sequel). Nevertheless, if I’m not the last person on the planet to have watched (and it came out in 2005 so I probably am) Enron: the Smartest Guys in the Room, I suggest you make an attempt to get a copy. The strong lesson is that it doesn’t matter how much an investment is making you; if you can’t understand it, sell it.

I’m in Los Angeles just now and was planning to use this afternoon writing a long and thoughtful piece on value investing in emerging markets. Fortunately for you I was distracted by the Getty Museum, so no 3,000 word waffle this month I’m afraid.

James Hay 9th May 2012

I don’t like to discuss stocks publicly but I am always happy to talk to existing investors and those interested in the fund. If you have any questions, concerns, ideas, or just fancy an argument, please get in touch.