Precy Dumlao, Opalesque Asia: Bahamas-based Magnum BGM Select Opportunities Fund reported a strong performance in February with +9.48% gains to bring its year-to-date returns at +14.47%. The fund started 2012 with 4.56% gains after closing 2011 down 9.90%.
In a statement, the fund said that its February performance "was considerably in excess of all comparable benchmark indices." The S&P 500 was up 4.06% while the MSCI World gained 4.06% last month.
"What makes the fund's returns even more compelling is that the Fund trounced the returns of the S&P 500 Index and comparable indices despite having only 34% of the portfolio invested in the equities market, and despite the fact that the Fund trades no derivatives and uses no leverage. That there will be a pullback in the equity market is certain. The extent and timing thereof is not. We will not try and guess. Rather, we will hold on to our portfolio, and selectively add to our holdings in the event of a pullback," the company added.
BGM employs a multi-disciplined event-driven strategy to identify mispriced, publicly traded corporate fixed income and equity securities. By investing in both fixed income and equities, BGM is able to identify mispriced securities across the different layers of a company’s capital structure.......................
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