Wednesday, 30 July 2014
Last updated 11 hours ago
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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…