Komfie Manalo, Opalesque Asia:
The Bahamas-based Magnum BGM Select Opportunities Fund posted strong gains this year with a year-to-date gross return of 16.5% (+2.01% in September, according to its latest report to investors.
"September was another strong month for the fund," BGM said in the report. It added, "We saw strength across our equity portfolio, with gains by Visa and Radian. On the fixed income portfolio, our Investec Finance, Old Mutual PLC and Skipton bonds generated a positive contribution."
The strong returns generated by their portfolios boosted the hedge fund’s long term prognosis, it said.
"We continued to sit with more than half the fund in cash. We have de‐risked considerably as a result, but do not intend to sit with this much cash for too long. We have identified a number of interesting investment opportunities and are slowly starting to build up our positions. Given the current uncertainty in Washington, our focus on identifying sound investment opportunities seems more appropriate than ever," the report said.
BGM has been a consistent positive performer this year except in the months of June and August when it registered losses of -1.87% and -0.50% respectively.
The fund closed 2012 up 28.24% and started this year with a 1.52% gain in January. BGM Select ......................
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