Coupland Cardiff: September Updates

Coupland Cardiff is a specialist Asian and Japanese fund management group with offices in London and Singapore. The firm was set up in 2005 by Angus Coupland & Richard Cardiff, who were previously at Jardine Fleming. Since inception, the group has launched 7 products across a range of strategies. They currently have three open-ended Asian funds (Asia Alpha, Asian Evolution and Asia Focus) that I recommend following via their monthly investor letters.

Below are some highlights from the September updates, all of which are available on their website:

CC Asian Evolution
Portfolio updates: Improved year on year operating results for Q2 from Multi Bintang Beer (which is owned by Heineken) following some regulatory issues in early 2015. The company’s shares are up ~60% this year. The fund also trimmed its position in longtime investment Vinamilk following changes in the company’s foreign ownership rules and its subsequent inclusion in various indices.

New holdings: Major Cineplex, the leading operator of movie theaters in Thailand, Cambodia and Laos (~70% market share in each of the markets). The company also holds a stake in India’s PVR Cinema. At the time of writing, the company’s shares traded at ~12x EV/EBITDA and a 4% dividend yield as a result of recent volatility in Thai markets.

CC Asia Focus
Portfolio updates: Strong recent performance from TK Group. The company is a manufacturer of moulds and plastic components. Big opportunity in the electronic products space with the rise of VR and smart devices. Company trades at less than 10x forward earnings and yields more than 5%. By contrast, their holding Newocean Energy is now down ~30% YTD. The company sells and distributes LPG to a wide range of end-users. The company’s shares trade at ~0.5x book value and a low single digit earnings multiple. Recent insider buying from the controlling Shum family.