Sunday, 7 February 2016
Last updated 1 day ago
Jul 10 2014 | 10:22am ET
New York-based hedge fund Maglan Capital gained 1.83% (net) in June putting it up 14.80% at the halfway point of 2014.
The numbers are far more impressive than those of the average hedge fund, which was up 3.2% in the first half, according to Hedge Fund Research. It also puts Maglan well above the benchmark DJ Credit Suisse Event-Driven Index, which added 4.04% in H1.
In its monthly newsletter, the distressed debt specialist said that in what it termed the “off-season” of the current distressed cycle, it will focus on “turnaround and post-reorganization equities, and regulatory/legal plays.”
“Today, instead of focusing on busted LBOs, we are taking advantage of busted IPOs in some instances,” wrote CIO Steven Azarbad and President David D. Tawil.
One such IPO was that of SFX Entertainment, an event organizer and content provider in the electric dance music space. Maglan said the firm met its criteria of being “misunderstod and out of favor with investors...at the nadir of its earnings potential” while offering “explosive earnings growth because of a unique and sharp management team strategy.”
Over the last 12 months, Maglan is up 47.77% net of fees.