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Bailey McCann, Opalesque New York:

The Bahamas-based Magnum BGM Select Opportunities Fund posted a strong February gross return of +4.28%. "While the portfolio performed nicely across the board, it was the dramatic outperformance of Radian in the month that helped fuel our strong performance in February (Radian’s stock price was up 37% in February)," the fund wrote to investors in a note today about performance.

Radian 2013 senior bonds matured in February, and were redeemed at par. The fund maintained a significant position in these bonds and bolstered much of its monthly return. The fund notes that Radian completed a sizable equity and convertible debt offering this month, and in doing so completely shored up its balance sheet. These success factors have left many shorting the company without much to do to recover. Magnum expects Radian stock price to continue to grow as these funds cover their shorts.

Radian was upgraded from a market perform rating to an outperform rating in a report released on Monday, by Keefe, Bruyette & Woods. Barclays has the company at "overweight," shares have been creeping higher this week on the news.

Following the redemption of the 2013 Radian senior bonds, the fund now has a significant cash......................

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