Tetragon Financial Group - More resilient than public equities in H122

Tetragon Financial Group’s (Tetragon’s) NAV declined 3.5% in H122 in total return terms, compared to a 20% fall in the MSCI ACWI Index (based on Refinitiv). The portfolio revaluation contributed 4.1pp to the decline, which was mostly due to a Q122 loss on Tetragon’s direct exposure to a publicly quoted biotech company and the downward revaluation of Equitix on the back of public multiples contraction. The best-performing assets in the portfolio were collateralised loan obligations (CLOs, which also assisted the valuation of the CLO manager LCM). Tetragon’s NAV total return was also supported by a NAV-accretive share repurchase (+3pp on NAV). Tetragon’s one-year NAV performance to end-June 2022 stands at 10%, compared to a 15% decrease in the MSCI ACWI (based on Refinitiv).