Komfie Manalo, Opalesque Asia:
The Bahamas-based Magnum BGM Select Opportunities Fund outperformed the S&P 500 despite posting a "moderate loss" in January but managers are still confident of a bright 2014.
In its latest monthly report to investors, BGM Select said the fund was down 0.44% in January. This compares favorably with the S&P which lost 3.56% and the Hedge Fund composite index which lost 0.77%.
"Our moderate losses during the month were tempered by some solid performances on our short book, with our shorts in Cardtronics and Suncor Energy performing well. We believe our asset allocation across the capital structure will stand us in good stead as the market takes a breather from the high octane Fed-sponsored equity buying spree. We continue to seek opportunities to deploy your cash productively, but are not scared to be long cash during these times," it said.
BGM ended 2013 on a high note with 19.41% gains. The fund consistently generated positive results from September to December last year with 2.01%, 1.09%, 0.44%, and 1.26% profits in the last four months of last year.
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 securitie......................
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