IRR: +15%

Holding Period: 0.6 Years

Portfolio Category: Special Situation


Advanced Info Service PCL is Thailand's largest GSM mobile phone operator. In 2013, it had 41 million customers and dominated the market with a 53% market share by revenue. The Company’s major shareholder – Intouch Corp (owns 40.5% of the Company) is controlled by Temasek Holdings, the investment company owned by the Government of Singapore. Political Unrest and Macroeconomic Conditions caused the Thai market to sell-off aggressively in 2013/2014. This created an opportunity for us to invest in this great franchise that operates in a largely oligopolistic environment, with high margins and significant free cash flow generation. We initiated a position in February 2014,  and by the end of August 2014 it was a 1.0% position of our portfolio. Our investment thesis was that the stock was trading at a reasonable discount to our conservative estimated intrinsic value. An improved political outlook whould drive share price towards intrinsic value