Sunday, 21 September 2014
Last updated 1 day 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.