Tetragon Financial Group (TFG) announced its annual results for year end 31 December 2024. The company delivered a NAV total return of 15.4% and a share price total return of 47.8%. The company’s performance was mainly driven by investments in Equitix, Ripple Labs Inc., and funds managed by Hawke’s Point.
Firstly, TFG Asset Management’s investment in Equitix, a leading international investor, developer, and fund manager in infrastructure, was the strongest positive contributor in 2024 with a gain of approximately $279m and remains the largest position. The company continues to grow and also had strong cash distributions during the year. TFG Asset Management’s assumed ownership level increased from approximately 75% to 81.48%, as described in Tetragon’s 30 September 2024 monthly factsheet. In addition, there was an increase in observable market comparables.
Secondly, Tetragon’s investment in Ripple Labs, a top U.S. enterprise blockchain company that supports the XRP cryptocurrency ledger, gained over $150m in 2024 due to favorable developments in the cryptocurrency regulatory landscape and tender offers conducted by the company.
And thirdly, investments in funds managed by Hawke’s Point, TFG Asset Management’s resource finance business, generated a gain of $126m, led by their largest strategic investment, an Australian gold mining, exploration, and development company.
Discussing the performance and the outlook for the trust, the manager noted:
“Although the improved “soft landing” backdrop in 2024 drove another year of outlier returns across many asset classes, it also heightened the potential impact of factors threatening to destabilize the multi-year rally. At the end of the year, the S&P 500 was valued at 21.6x forward earnings, far above the 2010-2019 average of 15.2x. This re-rating has been driven by the extraordinary rise of several key companies driving AI adoption; however, the resulting concentration has also increased market fragility, as revealed by the turmoil surrounding the release of a potentially disruptive Chinese AI competitor, DeepSeek, in January 2025.
“At a macroeconomic level, uncertainty around Trump’s economic policies has the potential to deepen U.S. deficits, curtail international trade via tariffs, reignite inflation, and drive “bond vigilantes” to demand higher rates. Beyond the unresolved regional conflicts in Ukraine and the Middle East, global political temperatures have risen as South Korea briefly declared martial law and incumbent parties faced steep losses in the United States, United Kingdom, France, Canada, India, Germany, and Japan, to name a few.
“These risks are real, but they are also accompanied by economic tailwinds driven by government deregulation and reform, above-trend growth in the United States, and the potentially immense productivity and innovation gains promised by AI adoption.”
TFG: Stellar year for Tetragon Financial Group
