Maglan Capital Returns 59% In 2013

Feb 19 2014 | 1:46pm ET

Maglan Capital, a New York-based event-driven hedge fund focused on all parts of the distressed cycle, was up 59% last year and started 2014 on a similarly strong note, adding 4.08% in January.

To put that in perspective, the Dow Jones Credit Suisse Event-Driven Index is up 0.29% in January, while hedge funds generally were down 0.56%, according to Hedge Fund Research.

The firm, co-founded by former Credit Suisse investment bankers David Tawil and Steven Azarbad in 2009, attributes its strong January results to two investments: the first, the Apollo Education Group (University of Phoenix) which the firm exited after realizing an IRR of 418%.

The second is FairPoint Communications, which has risen 77%, from $7.25 to $12.81, since the firm first listed the company in Schedule 13D filing. It's a position Maglan is not yet ready to exit—Azerbad and Tawil told investors in a January letter they believe the shares are worth over $30, “a 135% increase from here.”

Maglan has generated double-digit returns every year since inception with the exception of 2011, which saw it down 35%. In 2012, it was up 41%; 2010, 22%; and 2009, 29%.

Maglan has $62 million in assets under management.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note