Event-Driven Hedge Fund Maglan Capital Gains +7.17% In April

May 8 2017 | 10:40pm ET

Distressed investing specialist Maglan Capital gained +7.17% net of all fees and expenses in April, again outperforming broader underlying markets as well as its comparable HFRI benchmark index.

The strong showing brings the event-driven investor’s 2017 year-to-date return up to +6.99%, according to an investor update seen by FINalternatives. In comparison, Hedge Fund Research’s benchmark HFRI ED: Distressed Restructuring Index gained +0.53% in April and is up +1.90% YTD.

The investor update concentrated primarily on Maglan’s position in Argentinian energy play Madalena Energy, which nearly doubled from mid-December to mid-January amid improved outlooks for emerging markets and energy companies. Both the industry and the region have been on fire recently, Maglan said, with no signs of slowing down. 

Meanwhile, macro elements are also supportive of Maglan’s position in Madalena, the manager added. S&P has upgraded Argentina’s long-term credit rating from B- to B, while reforms undertaken by Argentine president Macri are helping push the economy to an annual average growth rate of 3% over the next three years. Pricing trends in the country are also favorable, Maglan said, as evidenced by a 10% increase in the wellhead price of natural gas in March. 

Founded in 2011 by former Credit Suisse executives David Tawil and Steven Azarbad, Maglan is an event-driven hedge fund with a focus on the liquid instruments of companies approaching, in, or exiting bankruptcy. The company carries a concentrated portfolio of investments across the capital structure of small- and mid-cap companies with core focus on financial distress, restructuring and operational turnaround. 

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