BTEM was by no means immune from December’s downwards lurch in equity markets, not helped by a headwind from a widening portfolio discount (31.5% to 33.0%). Weak Sterling provided only a minor offset. BTEM’s NAV fell -6.5% with the largest detractors including the Japan Special Situations basket, Tokyo Broadcasting System, Pershing Square Holdings (PSH), Symphony International, Fondul Proprietatea, Riverstone Energy, and EXOR. The reflexive strength in the Yen that typically characterises weak global equity markets helped offset a portion of the local currency losses from our Japanese equity holdings, with the currency gaining +3.6% against Sterling. The only two investments to register a positive return were Pargesa, and the hedged portion of our position in PSH.
British Empire Securities and General Trust p.l.c is referred to as ‘British Empire’ throughout the website. British Empire’s investment managers, Asset Value Investors are referred to as ‘AVI’