| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 8.31% | 0.27% | 0.27% |
Pangolin Asia Fund declined 6.59% in March 2026 but remains up 0.27% year-to-date, with the portfolio 100% invested across Indonesia (49%), Malaysia (35%), Singapore (12%), and Philippines (4%). Despite regional headwinds from ongoing war affecting oil-dependent economies, the fund's companies continue demonstrating resilience with 15 of 17 earnings updates exceeding expectations. Two Indonesian supermarket chains posted 7-8% sales growth versus industry 1.5%, highlighting quality company selection. The fund trades at attractive 9.9x PE with 20% ROIC and 11.3% free cash flow yield, significantly below underlying value creation which has compounded at estimated 13% annually in local currencies. Manager actively pursues corporate governance improvements, pushing for director share ownership alignment across portfolio companies. While geopolitical tensions have temporarily reduced investor interest, the manager believes well-capitalized, profitable businesses will emerge stronger from current crisis, with Singapore authorities now focusing on companies with excess cash providing additional catalyst for value realization.
Asian markets, particularly Indonesia, Malaysia, and Singapore, offer exceptional value with the fund trading at 9.9x PE despite 20% ROIC and strong cash generation, while underlying companies continue growing and creating value significantly above current market prices.
Manager expects portfolio of well-managed, net-cash and highly profitable businesses will emerge from any crisis stronger than competitors. Current forecasts put fund on 9.9x PE with 20% ROIC and 11.3% FCF yield for 2026. Cannot predict when markets will attract deserved attention, but believes underlying value creation significantly exceeds current valuations, with companies compounding value at estimated 13% annually in local currencies.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 7 2026 | 2026 Q1 | HAW.SI | Asia, consumer, Corporate Governance, Indonesia, Malaysia, Singapore, undervalued, value | - | Asian value fund trading at 9.9x PE with 20% ROIC despite strong underlying company performance. Portfolio companies significantly outperforming local markets with Indonesian supermarket chains growing 7-8% versus industry 1.5%. Fund 100% invested across quality businesses in Indonesia, Malaysia, and Singapore. Manager actively driving corporate governance improvements while geopolitical headwinds create temporary buying opportunities in undervalued regional markets. |
| Jan 9 2026 | 2025 Q4 | BMAZ.KL, DKSH.KL | ASEAN, consumer, Indonesia, Malaysia, undervalued, value | DKSH MK | Pangolin Asia Fund fell 3% in 2025 while underlying earnings grew 7%, creating deeper value opportunities. Portfolio trades at 11.3x P/E with 20% ROIC across undervalued ASEAN companies. Manager rejecting DKSH Malaysia takeover as too cheap and maintaining conviction in Indonesian consumer positioning despite near-term headwinds. |
| Oct 10 2025 | 2025 Q3 | AKRA.JK, BRPT.JK, CDIA.JK, DCII.JK, DSSA.JK, MYOR.JK | arbitrage, ASEAN, Indonesia, Institutions, regulation, value | - | Indonesian stocks present a compelling technical arbitrage caused by regulatory deterrents that drove domestic institutional ownership from 30% to 12% since 2018. Quality companies trade at half their historical valuations despite doubled profits. Regulatory fixes are underway with USD5-10bn of domestic buying expected. The fund maintains 54% Indonesian allocation to capitalize on this mispricing opportunity. |
| Jul 4 2025 | 2025 Q2 | BAUTO.KL, IGB.KL, MAPA.JK | ASEAN, consumer, dividends, Indonesia, Malaysia, value |
MAPA IJ BAUTO.KL MAPA.JK IGB.KL |
Pangolin Asia Fund's June decline reflects temporary headwinds in consumer and automotive sectors, but underlying portfolio fundamentals remain strong with 21% weighted-average ROIC trading at 9.9x forward PE. Manager sees ASEAN markets as analogous to 1951 US markets - abundant opportunities with companies generating 20%+ returns at single digit valuations, positioning for eventual price-fundamental convergence. |
| Apr 4 2025 | 2025 Q1 | NVDA, TSLA | ASEAN, consumer, fundamentals, Indonesia, Malaysia, tariffs, value | - | ASEAN-focused fund down 10.9% YTD but trading at compelling 8.9x P/E with 16% ROE. Trump tariffs create near-term headwinds but Indonesia's domestic consumption focus and Malaysia's semiconductor exposure provide insulation. Current weakness mirrors previous market dislocations where patient value investing was rewarded. Manager aggressively deploying capital into quality companies at seldom-seen valuations. |
| Dec 31 2024 | 2024 Q4 | BAUTO.KL, BFIN.JK | ASEAN, emerging markets, FDI, financials, Indonesia, Malaysia, value |
BERMAZ.KL BFIN.JK |
Pangolin Asia Fund's 3.75% decline in 2024 masks compelling fundamentals and positioning for ASEAN's FDI-driven re-rating. Malaysia's record 225% FDI surge mirrors the late 1980s boom that preceded the market's 1993 doubling. Trading at 10.4x P/E with 16% ROE, the fund offers attractive risk-adjusted returns despite near-term currency and performance headwinds. |
| Sep 30 2024 | 2024 Q3 | ARNA.JK | ASEAN, consumer, Dollar, Indonesia, infrastructure, small caps, value | - | Pangolin Asia Fund targets undervalued ASEAN small and mid-caps serving the growing middle class, currently trading at 10.3x P/E with 5.2% yield. Indonesian infrastructure development and easing inflation support the consumer recovery thesis. Despite dollar headwinds and online gambling risks, the manager sees compelling long-term value in this overlooked region. |
| Jul 5 2024 | 2024 Q2 | 1155.KL, BFIN.JK, HEXA.JK | ASEAN, dividends, emerging markets, Indonesia, Malaysia, value | - | Pangolin Asia Fund down 5.51% YTD despite strong ASEAN economic fundamentals and historically cheap valuations at 9.4x P/E. Fund benefits from 5.6% dividend yield while institutional selling creates opportunity. Manager sees current environment comparable to 2009 crisis levels, maintaining conviction in region's demographic tailwinds and eventual institutional flow reversal. |
| Apr 15 2024 | 2024 Q1 | - | ASEAN, Asia, emerging markets, GDP Growth, stock selection, value | - | Pangolin Asia Fund's 2.26% Q1 return reinforces their thesis that ASEAN requires active stock selection over index investing. The MSCI ASEAN Index has underperformed regional GDP growth by 3.3% annually over 30 years, missing consumption-driven expansion. The fund's concentrated approach across Singapore, Malaysia, and Indonesia targets this structural opportunity. |
| Dec 31 2024 | 2023 Q4 | - | ASEAN, dividends, Indonesia, Malaysia, ROIC, value | - | Pangolin Asia Fund delivered 8% returns in 2023 versus -3% for ASEAN markets, trading at 10x earnings with 29% ROIC companies. Fund offers 5.8% dividend yield from net cash holdings across Indonesia, Malaysia, and Singapore. Manager sees continued value opportunities in Southeast Asia while awaiting regional re-rating. |
| Jun 12 2023 | 2023 Q3 | 1295.KL, ASII.JK, BBCA.JK, BBRI.JK, C6L.SI, D05.SI, O39.SI, TLKM.JK, U11.SI, UNTR.JK, Z74.SI | ASEAN, financials, Indonesia, Malaysia, Singapore, value | - | Pangolin Asia Fund delivered 4.59% in November despite ASEAN market weakness, maintaining concentrated exposure to Indonesian and Malaysian value opportunities. The manager champions ASEAN as Asia's future with compelling valuations at 11x P/E and 19% ROE. Key catalyst is Indonesia's trajectory toward becoming the world's 6th largest economy, potentially attracting major institutional capital flows. |
| Jun 30 2023 | 2023 Q2 | - | Asia, Esg, Indonesia, Labor Rights, Malaysia, value | - | Pangolin Asia Fund posted 9.16% YTD returns despite severe currency headwinds, maintaining concentrated exposure to undervalued Malaysian and Indonesian equities. The manager emphasizes ESG compliance, particularly labor rights, as a key investment consideration. With portfolio trading at attractive 10.4x P/E and strong fundamentals, the fund expects continued outperformance through fundamental value creation. |
| Mar 31 2023 | 2023 Q1 | - | ASEAN, Asia, consumer, Indonesia, Luxury, value | - | Pangolin Asia Fund delivered 10% year-to-date returns by investing in undervalued ASEAN companies with net cash balance sheets. The fund is 65% invested in Indonesia, benefiting from lack of global investor interest despite 5% GDP growth and rising consumer spending. Manager sees continued opportunity as markets remain cheap and out of favor. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
ValueFund trades at 9.9x PE with 20% ROIC and 11.3% FCF yield, significantly below underlying value creation. Portfolio companies have compounded value at 13% annually in local currencies while fund NAV has underperformed since 2015 due to reduced EM allocations and US bull market flows. |
Valuation Undervalued Discount Intrinsic Value Mispricing |
Corporate GovernanceManager actively pushes for NEDs to be paid in shares to align with long-term shareholders, citing Warren Buffett's views on director independence. Believes improving shareholder returns and governance expectations have driven markets in Korea and Japan, with Singapore authorities now focusing on companies with excess cash. |
Board Alignment Director Compensation Shareholder Rights Governance Reform Share Ownership | |
IndonesiaRepresents 49% of portfolio with companies significantly outperforming industry despite macro headwinds. Two supermarket chains posted +7% and +8% sales growth versus industry +1.5%. War impacts create mixed effects with 50% of population hurt by higher commodity prices while other half benefits from rising palm oil, coal, and nickel prices. |
Supermarkets Consumer Commodities Palm Oil Coal | |
MalaysiaComprises 35% of portfolio with manager seeking pension fund support for governance initiatives. Country expected to grow 4.9% GDP in 2026 versus 4.7% in 2025, showing economic acceleration despite regional headwinds. |
Pension Funds GDP Growth Economic Recovery | |
| 2025 Q4 |
CreditEuropean credit markets delivered positive returns with iTraxx Crossover producing 2.16% and the 2x levered index generating 3.82%. The manager views credit as offering good risk-adjusted opportunities in the absence of meaningful defaults. Only one significant default occurred (Ardagh Packaging) with expected recovery around 40%. |
Credit iTraxx Spreads Defaults Recovery |
InflationInflation trends have diverged across developed markets, with the US and Eurozone showing stable to declining inflation while the UK faces persistent inflation at 3.4%, well above the 2% target. This divergence is affecting central bank policy responses and creating different risk environments across regions. |
Inflation Central Banks Policy Divergence | |
RatesCentral banks have largely completed their rate cutting cycles, with the ECB potentially offering one last cut in 2026 as EU inflation hits the 2% target. The Bank of England faces a challenging position with high inflation potentially forcing rate hikes despite economic weakness. |
Interest Rates Central Banks Monetary Policy | |
| 2025 Q3 |
IndonesiaIndonesian stocks are trading at valuations not seen for years due to regulatory issues that deterred domestic institutions from owning equities. The fund maintains a near 60% weighting in Indonesian stocks, capitalizing on price-to-value distortions caused by technical factors rather than fundamental issues. Regulatory changes are now underway that should restore domestic institutional buying. |
Indonesia Valuations Regulation Institutions Arbitrage |
ValueThe fund identifies significant price-to-value distortions in Indonesian markets, with companies like Mayora Indah and AKR Corporindo showing doubled profits since 2017 while share prices remain flat or declined. Consumer Staples sector trading at nearly half of its fifteen-year mean P/E ratio presents compelling value opportunities. |
Value Distortions Multiples Undervalued Mispricing | |
ArbitrageThe manager draws parallels between current Indonesian opportunity and past Public Bank arbitrage success, describing the current situation as a technical arbitrage caused by regulatory numbskullness rather than fundamental issues. This creates a deliciously warm opportunity for those positioned to take advantage. |
Arbitrage Technical Opportunity Mispricing Regulation | |
| 2025 Q2 |
ValueThe fund focuses on companies trading at attractive valuations despite strong fundamentals. Portfolio companies trade on single digit PEs with high returns on capital, while generating substantial cash flows and dividends. |
Undervalued PE Dividends Cash Fundamentals |
ConsumerSignificant exposure to consumer companies, particularly in Indonesia, though consumption remains weak due to post-Covid inflationary pressures affecting disposable incomes at the lower end. |
Consumer Indonesia Consumption Inflation Disposable Income | |
AthleisureInvestment in MAP Active provides exposure to sporting style leisurewear across ASEAN, particularly strong in Indonesia and Philippines, targeting the expanding young population and their increasing spending power. |
Athleisure Leisurewear Young Population Spending Power ASEAN | |
| 2025 Q1 |
ValueFund trading at extremely attractive valuations with P/E of 8.9x for 2025F, down 17% over six months. Many companies now meeting Ben Graham's cigar butt criteria. Current levels present opportunity to own quality compounders at seldom seen valuations. |
Valuations Ben Graham Compounders Cheap Fundamentals |
ASEANPortfolio concentrated in ASEAN consumer-focused companies with 57% Indonesia, 31% Malaysia exposure. Region seriously overlooked for years but seeing renewed US investor interest. ASEAN markets at COVID-low P/Es while offering stable growth. |
Indonesia Malaysia Consumer Overlooked Growth | |
Trade PolicyTrump tariffs pose headwinds with Indonesia facing 32% tariffs, Malaysia 24%. However, Indonesia's domestic consumption-driven economy (54% of GDP) should remain relatively insulated. Semiconductors excluded from tariffs benefits Malaysia's key exports. |
Tariffs Trump Domestic Consumption Semiconductors Insulated | |
| 2024 Q4 |
MalaysiaMalaysia is experiencing record-breaking FDI approvals, with approved FDI increasing 225% from 2020 to 2021, driven by investments from Microsoft, Nvidia, and AWS in electronics, data centers, and semiconductors. Historical precedent shows that similar FDI booms in the late 1980s preceded a doubling of the KLCI stock market in 1993, yet current FDI levels have not been reflected in market valuations. |
FDI Electronics Data Centers Semiconductors KLCI |
ValueThe fund trades at attractive valuations with a 2024F P/E of 10.4x and 2025F P/E of 9.3x, combined with strong fundamentals including 16-17% ROE and 21-22% ROIC. The manager emphasizes that underlying value matters more than short-term share price performance, drawing parallels to Berkshire Hathaway's early underperformance periods. |
P/E ROE ROIC Undervaluation Fundamentals | |
ASEANASEAN's share of global FDI inflows has tripled since 2015, accounting for 17% of global FDI inflows in 2023, notably exceeding China's 12% share. The region benefits from strong GDP growth forecasts of 5-6% across key markets, yet remains out of favor with strategists and investors. |
FDI GDP Growth Emerging Markets Regional Undervalued | |
| 2024 Q3 |
Infrastructure SpendingIndonesia's Trans Sumatra Toll Road represents a transformative infrastructure project spanning 2,998km across ten provinces. The project will reduce travel times by 70% and logistics costs by 30%, stimulating economic growth and benefiting portfolio companies like Arwana Citramulia through reduced logistics costs. |
Infrastructure Toll Roads Logistics Economic Growth Transportation |
Consumer FinanceASEAN consumer spending is recovering as inflation eases, with disposable incomes improving. However, online gambling is significantly impacting disposable incomes of the poor, creating a complex dynamic for consumer-focused investments in the region. |
Consumer Spending Disposable Income Inflation Middle Class Purchasing Power | |
DollarThe inverse relationship between USD strength and ASEAN asset performance is a key driver. Weaker USD from lower interest rates drives investors to ASEAN assets seeking higher returns, while stronger USD periods favor US markets over the region. |
Currency USD Interest Rates Capital Flows Commodity Prices | |
| 2024 Q2 |
ASEANFund is 95% invested across Singapore (8%), Malaysia (37%), Indonesia (53%), and Philippines (2%). Manager emphasizes continued institutional selling from US-based EM funds while highlighting the region's compelling valuations and growth prospects. ASEAN economies are experiencing strong GDP growth with Malaysia at 5.2%, Indonesia at 5.0%, and Philippines at 6.0%. |
Southeast Asia Emerging Markets Regional Focus GDP Growth Institutional Flows |
DividendsFund's estimated dividend yield for 2024 is 5.6%, with dividends contributing significantly to returns. Without dividends, the fund would have fallen 8.13% year-to-date versus actual decline of 5.51%. Manager views dividend income as providing capital to reinvest in stocks getting cheaper. |
Dividend Yield Income Reinvestment Cash Flow | |
ValueFund's valuations described as cheap as they have been since 2009, trading at 9.4x P/E with 19% ROE and 25% ROIC. Manager emphasizes buying companies at ludicrously cheap valuations coupled with decent yields, comparing current opportunity to 2009 crisis levels. |
Valuation P/E Ratio ROE ROIC Undervalued | |
| 2024 Q1 |
ASEANThe MSCI ASEAN Index has significantly underperformed GDP growth over three decades, returning just 1.2% annually versus 4.5% GDP growth. Index investing fails to capture consumption-driven growth, making careful stock selection essential for ASEAN investing. |
Index GDP Consumption Stock Selection Emerging Markets |
| 2023 Q4 |
ValueFund trades at 10x 2024 earnings with companies generating 29% ROIC and 19% ROE. Manager emphasizes finding companies with high returns on invested capital at attractive valuations, describing the opportunity as bargain-basement prices in Southeast Asia. |
ROIC ROE Valuations Earnings Returns |
ASEANFund focused on Southeast Asian markets with 97% invested across Singapore, Malaysia, and Indonesia. Manager notes ASEAN index fell 3% in 2023 while fund returned 8%, highlighting continued underperformance of regional markets versus US indices. |
Southeast Asia Regional Underperformance Emerging | |
DividendsFund's dividend yield reached 5.8%, highest since 2009. Manager notes this high yield reflects the quality of underlying companies and their cash generation capabilities, with most holdings being net cash companies. |
Yield Income Cash Distribution | |
| 2023 Q3 |
ASEANManager views ASEAN as undervalued and representing the future of Asia, contrasting it with Japan which he sees as not the future despite recent performance. He argues that combining cheap valuations with future growth potential makes ASEAN attractive, particularly as Indonesia is projected to become the world's 6th largest economy by 2027. |
Indonesia Malaysia Singapore Emerging Markets Value |
FinancialsBanks feature prominently in the manager's investment thesis, with specific mention of Malaysian and Indonesian banks having NPLs below 1%. Singapore banks are characterized as ASEAN+China trading companies, while Bank Rakyat is highlighted for having Indonesia's largest branch network reaching underserved markets. |
Banks Credit Quality NPLs Branch Networks Trading | |
ValueThe fund's weighted valuations show attractive metrics with 2023F P/E of 11.0x and 2024F P/E of 10.0x, combined with strong ROE of 19% and dividend yield of 5.3%. The manager emphasizes stock picking in markets where few others are looking, particularly highlighting opportunities in overlooked Malaysian stocks. |
P/E Ratio ROE Dividend Yield Stock Picking Overlooked | |
| 2023 Q2 |
ESGThe letter extensively discusses labor rights issues in Malaysia, highlighting worker exploitation and abuse cases. The manager emphasizes the importance of the social aspect of ESG investing, particularly employment conditions and worker treatment in Asian markets. |
Labor Rights Worker Exploitation Social Impact Employment Standards Migrant Workers |
| 2023 Q1 |
ASEANFund is 65% invested in Indonesia with 30% in Malaysia and 5% in Singapore. ASEAN GDP grows at approximately 5% most years while the ASEAN index has fallen 27% over the past decade despite growing economies and corporate profits. According to Goldman Sachs, Indonesia will have the world's 4th largest economy by 2050. |
Indonesia Malaysia Singapore GDP Growth |
LuxuryAnalysis shows Asian consumers increasingly spending on luxury goods, with Hermès APAC sales as percentage of total revenue increasing by 13% since 2015. There is a desire to advertise wealth in this part of the world, representing a generational shift from indebted farmers to self-made wealth. |
Hermès Consumer Spending Wealth APAC | |
ValuePortfolio consists of companies with net cash on balance sheets trading at absurdly cheap valuations. Manager notes there is so much that is cheap in their markets, with very little competition from other investors providing luxury of time when assessing companies. |
Net Cash Cheap Valuations Undervalued |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jan 9, 2026 | Fund Letters | James Hay | DKSH MK | DKSH Holdings (Malaysia) Berhad | Consumer Staples | Consumer Staples Distribution | Bull | Bolsas y Mercados Españoles (Madrid) | cashflow, Distributor, Governance, takeover, undervaluation | Login |
| Jul 4, 2025 | Fund Letters | James Hay | MAPA IJ | Map Aktif Adiperkasa Tbk | Consumer Discretionary | Specialty Stores | Bull | New York Stock Exchange | Asean, consumer, growth, Netcash, retail | Login |
| Jul 4, 2025 | Fund Letters | Pangolin Asia Fund | MAPA.JK | MAP Aktif Adiperkasa | Consumer Discretionary | Apparel Retail | Bull | Indonesia Stock Exchange | Asean, athleisure, Demographics, expansion, high-ROIC, Indonesia, retail, Value Disconnect | Login |
| Jul 4, 2025 | Fund Letters | Pangolin Asia Fund | IGB.KL | IGB Berhad | Real Estate | Real Estate Development | Bull | Bursa Malaysia | Asset Development, Malaysia, Patient Capital, Real Estate, REIT, turnaround, value unlocking | Login |
| Jul 4, 2025 | Fund Letters | Pangolin Asia Fund | BAUTO.KL | Bermaz Auto Berhad | Consumer Discretionary | Automobile Retail | Bull | Bursa Malaysia | automotive, cash generation, Cyclical, Distributor, franchise, High Dividend, Malaysia, Value | Login |
| Jan 8, 2025 | Fund Letters | Pangolin Asia Fund | BFIN.JK | BFI Finance Indonesia | Financials | Consumer Finance | Bull | Indonesia Stock Exchange | acquisition target, asset quality, consumer finance, Independent, Indonesia, Lending Spread, Npl, Vehicle Financing | Login |
| Jan 8, 2025 | Fund Letters | Pangolin Asia Fund | BERMAZ.KL | Bermaz Auto Berhad | Consumer Discretionary | Automobile Retail | Bull | Bursa Malaysia | automotive, Chinese Competition, Distributor, dividend, franchise, Kia, Malaysia, Mazda, turnaround | Login |
| Dec 6, 2023 | Fund Letters | Pangolin Asia Fund | - | Padini Holdings Bhd | Consumer Discretionary | Textiles, Apparel & Luxury Goods | Neutral | Bursa Malaysia | Budget Fashion, China Sourcing, Corporate Governance, inventory management, Malaysia, retailer, supply chain, Value Segment | Login |
| TICKER | COMMENTARY |
|---|---|
| HAW.SI | We've owned Haw Par in Singapore since July 2016 and in that time, we've seen next to zero analyst coverage of the stock. Last year, Haw Par, via a combination of a rising share price and a special dividend returned us in excess of 60%. The broker Macquarie, we read in The Edge, has recently initiated coverage with a target price of S$20.60 (we think the company is worth substantially more, but it's a good first effort). |
| Ticker | Put/Call | Amount Bought | Shares Bought | % Change | Weight % |
|---|---|---|---|---|---|
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| Ticker | Put/Call | Amount Sold | Shares Sold | % Change | Weight % | Status |
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| Industry | Prev Quarter % | Current Quarter % | Change |
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