BTEM’s NAV was up +1.8% in December, and closed the calendar year up +14.6%. With FX moves netting out to almost zero over the month, the gains came from local currency moves in key holdings. Our largest contributors were Aberdeen Private Equity, Aker, the Japanese Special Situations basket, Adler Real Estate, NB Private Equity Partners, JPEL Private Equity, Tetragon, Wendel, and Cosan Limited. Detractors were Jardine Strategic, GP Investments, Riverstone Energy, and Swire Pacific.
Aberdeen Private Equity (APEF)’s share price climbed +16% upon the announcement that an agreement had been reached to sell its entire investment portfolio at a modest premium to NAV. We made our initial investment in APEF in Apr-17 at a 20% discount to the prevailing NAV, and built up a stake in excess of 25% over the following months at tighter discounts.