Overlook Partners Hedge Fund up 8.2% YTD, Likes JSH



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Overlook Partners Fund LP was established by Richard H. Lawrence Jr.’s Overlook in 1992. The fund invests in public equity markets throughout Asia excluding Japan. The hedge fund currently has approximately $3 billion under management.

According to sources with direct knowledge of the matter, the fund comments on the banking behavior, whereby bankers habitually lie as a requisite for the business. It will never be a smart business strategy to disclose the debilitating condition of assets, rising costs, and reduced profits on investments, so lying comes naturally to them. Following the same line of argument, politicians use denial as their defense mechanism to all calamities that befall the economy. If politicians step up and start making tough calls, rather than sugar coating the crisis, whether its political or financial, things would not mess up as badly as seen today in many regions of the world.

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The Overlook portfolio evaluates potential investments on the basis of margins of growth a company can offer to shareholders, through its subsidiaries and stakes. The assets should be divided in both heavy and light companies. According to theses specifications, the fund rates the portfolio of Jardine Strategic Holdings Limited (SGX:J37), the principal holding company for Jardine Matheson Holdings Limited (SGX:J36) (PINK:JARLF) (PINK:JMHLY), as a valuable investment option for businesses. Jardine’s controlling stakes guarantee cash flow and offer effective pricing options.  Jardine Strategic Holdings Limited is a China-based company, established in 1832, with operations in dairy farms, land developments in Hong Kong, Singapore, and China, and controlling stakes in Astra Intl., an Indonesian company that deals in autos, heavy machines, mining, and oil etc.

The transactions and deals of JSH, during the period of 1985-1995, made it an unfavorable investment as the company missed on various lucrative opportunities, cultivated a difficult relationship with the government, and sold out valuable properties in Hong Kong. But the company recultivated and disciplined itself in the period of 1996-2007. It divested off underperforming businesses and established its hold in Singapore, Hong Kong, and Astra Intl. Jardine Matheson progressively expanded its assets in Asia from the early 2000s till 2011. By the end of the decade more than 90 percent of its revenues were generated from the Asian market. The net profits increased and the company bought back a large number of its own shares.

Overlook favors investment in  Jardine Strategic Holdings Limited, because it displayed methodical management policy, by progressively buying controlling stake in Astra Intl over the past decade. JSH gained $ 687 million in profits from the  Indonesian conglomerate in 2011. Moreover the company has shown a revenue growth of 19% and earnings per share growth rate of 24% over the past five years.

Overlook Partners Fund LP has over US$2.2 billion in net assets. The total loss for this quarter equaled 4.58%, but the fund is up 8.17% year to date. For June the fund was down 1.1%.




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