Tantallon India Fund Report, February 2025
The Tantallon India Fund closed down -6.81% in February; this current five month market drawdown is the longest stretch of negative returns that we can remember, and the selling over the last few weeks has been indiscriminating, with foreign institutional investors continuing to aggressively re-allocate to Chinese equities, local retail investors grappling with margin calls and diminished liquidity in the small and mid-cap space, and all investors struggling to come to terms with heightened geo-political, tariff, and global growth/recession related uncertainty as policymakers ‘change’ the rules. Valuations have compressed meaningfully, while earnings continue to be resilient; Indian markets are now nominally as cheap as they were in the post-Covid panic.
