AGT Partners' Quarterly letters

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#11
Interesting to see AGT Partners adding to its winning stakes at much higher prices than the initial investments during their investees' cyclical lows. Is it a real "long term ownership mentality" or simply because it is getting too much fund inflows? I would assume it is probably a mixture of both. Smile

Oiltek, Marco Polo Marine, Nam Cheong, OKP – Singapore boutique fund bets big on SGX small caps

The fund made headlines in June 2026 after emerging as a substantial shareholder of Marco Polo Marine. Its Ginko-AGT Global Growth Fund bought 700,100 shares in the marine logistics group for S$117,980.85, raising its stake to 195.94 million shares or 5.006 per cent.

In May, the fund picked up 50,000 shares in shipbuilder Nam Cheong for S$68,000, raising its stake to 6.009 per cent from 5.996 per cent previously.

A month before, AGT became a substantial shareholder of transport infrastructure and civil engineering group OKP Holdings, increasing its direct interest from 3.54 per cent to 6.51 per cent through a married deal. It acquired 16 million shares at an average of S$0.735 apiece.

“Other than buying companies at a very cheap valuation, we would not want to be (stuck) in a valuation trap, so (we ensure that) strong tailwinds are... pushing them,” he said. He cited Nam Cheong and Marco Polo as examples of companies positioned to benefit from cyclical recovery and longer-term structural trends.

After putting so much time and funds towards tracking, researching and investing in these companies, what is AGT’s exit strategy? “These are companies that we have followed for quite a while. We are not jumping on the bandwagon just because they are currently in favour,” Tan said. For him, the ideal investment is a business it never has to sell – one where AGT can continue growing alongside the company and its management team over the long term.

“We don’t really see it as just buying stocks; we see it as investing in the business alongside the owners and management,” he said. “The initial valuation target or exit point that we have in mind is really more of a moving goal post, as we continue to understand the business better.”

https://www.businesstimes.com.sg/compani...small-caps
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
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#12
If we were to account for the leverage (assume ~150% + 3% YTD funding costs), we are looking at ~20-25% returns for 1H26. When compared to historical returns, these numbers are regressing to the mean but AGT Partners' portfolio size is also meaningfully larger than the past.

I find great encouragement that AGT Partners don't just stick to 1 style - eg. value, or quality or compounders or whatever...But they have long term compounders, lower quality stocks (rejected by investors but may have a turnaround) and they also try to time the capital cycle via cyclical stocks like SK Hynix in the portfolio. I suspect that this may be the secret sauce compared to the many "one trick pony" fund managers that I have read/followed all these years.

The Market doesn't give you returns that suit your style. Rather, the Market only gives when you have something that suit its style.

AGT Partners 2Q 2026 Shareholder Letter

During 1H26, our fund generated a return* of +32.4% for Class A, +30.2% for Class B and +31.0% for Class C. Our gearing levels were largely stable and maintained at around 140% to 170% through these 6 months.

So far this year, we have added meaningful value for shareholders despite a highly uncertain external environment. We have had to navigate volatile energy prices arising from the ongoing US–Iran conflict, elevated interest rates in the US, and expensive valuations across many parts of the AI and semiconductor space.

https://agtpartners.com.sg/wp-content/up...Letter.pdf
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
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#13
AGT Partners published their 3Q26 commentary today and it seems like they have not made money (with ~1-2% loss) for the June-Sept period. For Oct month-to-date, they have actually lost ~15%. Well, my own portfolio has also experienced mid to high single digit declines in Oct alone.....so I guess, i am not alone Tongue

The more interesting thing is that they own up having invested ~2% of their capital in 2 US office S-REITs back in early/mid 2024. I probably also looked at US office REITs back then but decided that the risk-to-reward ratio wouldn't compensate for the amount of unknowns (ie. my ignorance). So sometimes, ignorance saves us from the heart pain of losing money but also similarly prevents us from the joy (of earning) too. Matter of fact, if I do not find myself having small losses every now and then, I am probably not pushing the investing hard enough too.

3Q 2026 Shareholder Letter

As of 27th Oct 2026, our NAV/share has declined approximately 15.2% month to date. To cope with the high level of uncertainties and heightened volatility, we have reduced our gearing level further to 127%. We are monitoring global market developments closely and will make further adjustments to our exposure if necessary.

While the recent decline in our NAV is disappointing, we believe it is important to distinguish between temporary share price volatility and a genuine deterioration in the underlying value of our investments. Where our original investment theses have
weakened or no longer hold, we must be prepared to reduce exposure or exit positions.

Conversely, where business fundamentals remain intact and valuations have become more attractive, we are prepared to remain patient and, where appropriate, take advantage of the opportunities presented.

We do not expect to get every investment decision right. What matters is our willingness to recognise mistakes, continually reassess our assumptions, and remain disciplined in how we manage risk and allocate capital. We have also reduced our gearing to preserve flexibility in navigating the uncertainties ahead.

There is no shame in losing money in investing, provided we have made thoughtful, rational decisions based on the information available at the time and remain willing to reassess our assumptions as circumstances change. Losses are inevitable from time to time when pursuing superior long-term returns. There will always be opportunities to recover and create value when conditions improve, provided we manage our risks prudently and, above all, live to fight another day.

https://agtpartners.com.sg/wp-content/up...tter-1.pdf
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.
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