TwinPeak’s 1Q2016 NAV Results (Excerpt)

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TwinPeak’s 1Q2016 NAV Results (Excerpt)

Below are excerpts from the quarterly report of a private family office we manage. As previously mentioned (link), we have liquidated our previously managed portfolios and consolidated our assets in an investment vehicle. Results are only audited on an annual basis.

(Excerpt)

September 30, 2015

To the Shareholders of TwinPeak:

Value Partners Asia Bets On India In Hopes Of “Demographic Dividend”

Value Partners Asia ex-Japan Equity Fund has delivered a 60.7% return since its inception three years ago. In comparison, the MSCI All Counties Asia (ex-Japan) index has returned just 34% over the same period. The fund, which targets what it calls the best-in-class companies in "growth-like" areas of the market, such as information technology and Read More

TwinPeak’s NAV (the “TWIN”) increased 0.05% versus a 10.93% loss for the iShares Core MSCI Pacific ETF (the “MSCI Pacific”) for the 3-month period that ended September 30, 2015. The following table compares the TWIN’s unaudited performance (after fees) with that of the MSCI Pacific for various periods ending September 30, 2015.

At September 30, 2015, the value of a SG$10,000.00 hypothetical investment in the company at its inception is worth SG$10,005 compared to SG$8,907 for the MSCI Pacific.

Market Commentary

Recently, much furor has been made regarding the slowdown of Emerging Markets. It is not hard to see why, with the impending slowdown in China, instability in Thailand, corruption scandal in Malaysia and poor economic outlook in other countries.

The slowdown in China also presents major concern for many investors. While the signals from China, whose woes triggered this most recent correction, are not encouraging, they seem somewhat overblown to us.

“Bull markets are born on pessimism, grown on scepticism, mature on optimism and die on euphoria.”

With such volatility, many are adopting a ‘sell first and hold cash’ strategy, waiting for markets to really bottom out. We do not know where or when the bottom of this correction is going to be. Nobody does. Every day, however, we seek to take advantage of dislocations in the small-cap market to build strong absolute long-term returns. Overall, we find stocks within Asia are relatively cheap across the board and have begun deploying the cash we have.

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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.

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