Sanditon has published its first set of interims since listing. Having started operations with a net asset value of 98.7p, the fund ended 2014 with a net asset value of 99.2p. At one point on the period though the net asset value had touched 103.1p. The fund kept its net exposure to the market fairly low over the period. The statement says that the period our long book lost 0.5% and our short book made 1.6% representing returns on average capital employed of -1.1% and +4.6% respectively – not enough of a gap to make meaningful progress in their view.
They say they didn’t hold a big enough long position in defensive equities and failed to add to positions in October. They don’t like shares of industrial companies – saying these are trading on peak margins and are vulnerable to slowing revenue growth. They are wary of being short oil stocks generally but did make half of their return on the short book from shorting two oil service companies.
Their stake in the management company has remained valued at cost. Funds under management are now £290m.
SIT : Sanditon benefits from oil service shorts