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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Ross & Van Compernolle 2024 Q3 Investor Letter | Buyside Digest

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Primary Source Intelligence • Q3 2024 Letter Analysis

Ross & Van Compernolle Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Ross & Van Compernolle. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+9.6%

YTD+9.2%

Digest Analysis

Quick Take

"Two oil services exits drove outperformance with 50-70% gains. Fed rate cuts and China stimulus sparked ASEAN rally with currencies strengthening 3-10%."

Executive Summary

The RVC Emerging Asia Fund returned 9.6% in Q3 2024, bringing year-to-date returns to 9.2%. The quarter was marked by extreme volatility, beginning with a 20% collapse in Japanese equities in August that prompted the fund to exit URC PM and increase cash. However, markets recovered strongly following a 50bps Fed rate cut and subsequent China stimulus packages. Two oil services holdings, DMHL SP and BKM SP, drove outperformance with gains of 50-70%, with DMHL acquired by Hanwha Group for a 97% total return. The fund recycled these profits into new positions including Japfa Ltd, a pan-Asian agri-food company recovering from margin compression. ASEAN currencies strengthened 3-10% within six weeks, with the Malaysian ringgit up 10.3% and Thai baht up 5.7% for 2024. Thailand's USD 10 billion stimulus package transformed the country from one of the worst performing markets to +6% in USD terms. The manager questions whether Asia is finally catching a bid after a decade of underperformance.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The fund demonstrates moderate-high conviction through concentrated positions (top 5 holdings represent 37.5% of the fund) and specific position sizing details. The manager provides clear rationale for exits and entries, names specific holdings with percentages, and explains valuation targets. However, the diversified nature across multiple countries and the defensive cash raising during volatility prevents a higher score.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about Asian markets, questioning whether Asia is finally catching a bid after a decade. While noting positive developments like stimulus packages and currency strength, the tone remains measured rather than definitively bullish.

Risk Appetite

10%

DefensiveAggressive

Defensive (10%)

The fund increased cash during the Japanese market crash and fully exited positions as a defensive measure. While they recycled profits into new positions, the initial response to volatility was risk-off, indicating a cautious positioning approach.

Capital Deployment

43%

De-riskingDeploying

Net Neutral (43%)

The fund initially increased cash by exiting URC PM during market volatility, then recycled profits from successful exits into new positions. While there was some redeployment through new positions like Japfa Ltd and re-adding IVL, the net effect appears slightly defensive given the initial cash raising response to market stress.

Forward Guidance

15%

CautiousExpansionary

Cautious (15%)

The manager indicates they will divulge new positions as they grow in size and re-added the IVL position in mid-October, suggesting selective deployment. However, the overall guidance is cautious and measured rather than aggressively bullish.

Language Signal

30%

BearishBullish

Bearish (30%)

The letter contains more positive language around opportunities, stimulus packages, and market recovery than negative language. Terms like outperformer, rally strongly, and catching a bid outweigh risk-related language, though the tone remains balanced.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager acknowledges market volatility risks, specifically noting the potential for equity market crashes to spread throughout the region. However, risk discussion is moderate and focused on specific market events rather than systemic concerns. The defensive positioning during Japanese market volatility indicates awareness of downside risks.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

The manager identifies multiple opportunities across the region, adding new positions like Japfa Ltd and noting availability of other opportunities that justified exiting DMHL despite its potential upside. The recycling of profits into new positions and selective additions suggest a reasonably rich opportunity set.

Time Horizon

60%

Short-TermLong-Term

Multi-Year (60%)

The fund demonstrates a medium-term approach with some positions held for 6-month periods and fair value estimates for 18-24 months ahead. The trading position in IVL shows tactical flexibility, while the Japfa investment appears more strategic. The approach balances opportunistic trading with longer-term positioning.