NASSAU, Bahamas (HedgeWorld.com)–Capitalizing on stocks trading at deep discounts is part of the latest investment strategy managed by GP Asset Management.
The new fund, G2 Special Situations Offshore Fund, looks for companies that have an identifiable and quantifiable rationale for value that can be unlocked. Magnum Global Investment Ltd. is overseeing the vehicle and strategy, which has been profitable in a domestic partnership format since 2003, according to the firm..
Special-situations strategies have proven popular with hedge funds as of late, with interest rising in distressed and event-driven portfolios. Special-situation companies include those that are emerging from bankruptcy or involved in spin-offs or restructurings or have other complex capital or corporate structures that may discourage traditional investor interest.
Fund Portfolio Manager Leonard J. Gross has had eight years of hedge fund experience, initially working as an investment analyst at Steinhardt Partners and then moving on to Garnet Group, where he managed a US$100 million value fund.
His fund’s strategy holds between 25 and 35 core positions that typically are retained for 12 to 18 months. According to the company, the investments have a low correlation to the broader equity markets.
“Often these investment opportunities are characterized by some sort of ‘shock’ that has caused short-sighted institutional money to rush out, resulting in a plummeting stock price,” said Mr. Gross in a statement. “We invest with the understanding of what has caused this shock and what catalyst or event is expected that will facilitate a change in perception so that the trading price will re-converge with the intrinsic value.”
Based in Nassau, Magnum offers a series of funds of funds and single-strategy hedge funds to U.S. and offshore investors. The most recent Magnum fund launches were the Chaparral Offshore Fund and the Aptus Capital Offshore Fund last November.
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