Tantallon Asia Impact Fund Report, May 2025

The Tantallon Asia Impact Fund closed up +8.24% in May with markets looking through the tariff overhang (under the ‘assumption’ that President Trump is likely to moderate his more extreme positions and is likely to re-engage with the Chinese on less-adversarial terms), while starting to model a weaker US$ ‘encouraging’ flows back into Asian risk assets. We have stayed focused on first principles, and have taken advantage of the market volatility to build on our high convictions in attractively valued pockets of tariff resilience, the picks and shovels along the AI value chain, the deep value/structural beneficiaries of policy/corporate reforms and of improving capital allocation discipline in Japan and Korea, energy security, the imperative in NATO and peripheral Europe and in Asia to increase defense spending, and in India’s commitment to further policy and regulatory reforms to build a viable, scalable, alternative manufacturing hub as global supply chains look to re-set in a tariffed world.