Castlewood Select Opportunity Fund Gains 2.15% in February

Mar 9 2016 | 7:32pm ET

Castlewood Select Opportunity Fund’s performance streak continued in February, with the fund booking its sixth consecutive month in positive territory.

Castlewood posted a net 2.15% during the month, according to an update seen by FINalternatives. The result follows gains of 16.2% in 2015, compared to -2.33% booked by Hedge Fund Research’s HFRX Equity Hedge Index.

“Our investors have been pleased by [our] ability to deliver positive returns during the difficult market environment that began in 2015,” said Mark Wittenstein, managing partner of the Castlewood Select Funds. He credits the outperformance to Castlewood’s multi-strategy approach as well as its ability to react to sudden shifts in market sentiment. 

“Because we are a relatively small fund, we’re agile and able to position our portfolio to take advantage of the sentiment shifts that have frustrated both bulls and bears in recent months,” Wittenstein said. He expects the market’s volatility to continue well into 2016, and believes the U.S. equity market may have a difficult time moving to new highs in the near term. 

“Diverging central bank policies will contribute dollar strength which, in turn, will pressure profits,” added Wittenstein in the update. “Until there is some expectation of improvement in earnings for U.S., companies, markets are likely to struggle. 

Accordingly, Wittenstein said Castlewood has narrowed its focus temporarily and is on the lookout for trading opportunities in what it expects will be a range-bound market. 

Headquartered in Princeton NJ, Castlewood was founded in 2014 by Wittenstein and former Smith Barney executive Joseph Madison. 

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