Parallel Tangent Capital. Releases Monthly Net Asset Value and Performance As Of 28 February 2025.
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Parallel Tangent Capital. (‘PTC” or the “Company”) today released its regular monthly Net Asset Value (“NAV”) and performance returns for the month of February on its website. The NAV and performance returns were calculated as of the close of business on 28 February 2025.
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Highlights Include :
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Share Price : $95.99
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Month To Date : -1.87%
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Performance To Date : 26.67%
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Beta : 1
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Dividend : 2.29%
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Cash Position : 8.69%
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Further details of Net Asset Values and Returns can be accessed on the website here.
Further details of all Monthly performance can be accessed here.
Specific details of February can be accessed here.
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Management Commentary;
Negatives: The fund continued to experience headwinds this month due to uncertainty of the consequences of tariffs with the US closest trading partners and due to the strength of the U.S.D. Positions that are USD-denominated but primarily generate revenue in a currency other than USD have experienced a drop in share price over the previous months. Opportunistic purchases has reduced the cash position to 8.7% down from 10.97% and has raised the portfolios Beta slightly to 1. Despite the dividend interest rate increasing it remains slightly under the target rate of 2.52% for March. We underperformed the SPX by 0.45% for the month of February. Despite impressive quarters for the semi-conductor industry our core portfolio holdings experienced headwinds. We expect these changes to be transitory and correct over the coming months..
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Positives: We continue to outperform the SP500 for the year and since the start of reporting by 7.4%. Since inception we have consistently beat the index, paid a higher dividend and having a lower Beta despite the aforementioned headwinds. We have 8.69% cash reserves ready to take advantage of opportunities and volatility this year. The notable changes this month include; cash decreasing by 20.78%, Mid Cap holding -28.42%, Consumer Defensive -15.3%, Industrials +15.3% & Consumer Cyclical +17.71%. We started new positions in out of favour Tesla as we consider the pull-back over done and once the hype and the drama created by the protestors subsides the underlying
company remains the same. We reduced some small cap Bio-Pharma companies and reduced our position in EL. We have very little exposure to China (except BIDU), Canada (SU) or Mexico (STZ), and so do not expect to be disproportionately disadvantaged by President Trumps’ tariffs. The overall volatility of the fund remains constant with a Beta
of 1 and our dividend improved to 2.29% greater than the SP500’s 1.26%.
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Conclusion: We are somewhat disappointed with the funds slight miss this month but can report that we have recovered those losses in the first week of March. Having added to quality positions last month I remain confident about the fund's continued success.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All investments involve risk including the loss of principal.
All information contained herein is unaudited unless otherwise noted. PTC is not a Public Company and is structured as a private investment fund. The NAV per share is calculated using a constant formula to assist the reader in understanding the Net returns generated by the company and the NAV of the fund. The author believes this to be a true representation of the performance of the Company.
Depending on the timing of an individual investor’s specific investment, net performance for an individual investor may vary from the net performance as stated herein. Performance data and other information contained herein are unaudited but the author has undertaken to ensure the information is accurate except where decimal rounding is used. Performance is based on the USD return for the specific period, including any, and all dividend, interest or bond payments received by the Company, calculated from the beginning of such period to the end of such period.
Where N.R. or - is stated as an abbreviation of Not Recorded, this is due to the company not recording these figures before 31 October 2024 and so are not available for periods before this time. It would not be possible to calculate these figures with accuracy retrospectively and so to avoid any misrepresentation they have been excluded.
Dividends are calculated using the value of each position based on stock prices published from reputable sources and by using equally reputable sources' publicly published divided returns for each company or investment. As the share price and dividend both fluctuate, PTC can not ensure complete accuracy when producing these figures but has undertaken to do so diligently using both its current value and dividend rate, not the purchase cost, and believes that any errors would be insignificant. Likewise, beta's are calculated using the same metrics and procedure and thus the company is confident that any errors would be insignificant for reporting purposes.