By a News Reporter-Staff News Editor at Biotech Week -- Lemelson Capital Management, LLC, a private investment management firm, announced performance results for its flagship Amvona Fund for the trailing 12 months (TTM) through June 30, 2014. During this period, the fund beat the benchmark S&P 500 Total Returns Index by 407.95 percent, returning 87.22 percent net of all fees and expenses. The fund's TTM performance was fueled in part by its significant short position in Ligand Pharmaceuticals (NASDAQ:LGND), a previous short position in World Wrestling Entertainment and its current long position in Kulicke & Soffa Industries (see also Lemelson Capital Management, Llc).
For the second quarter ending June 30, 2014, the fund returned 29.03%, beating the benchmark S&P 500 Total Returns Index by 733.08%. For 2013, the fund returned 89.25 percent gross and 61.39 percent net of all fees and expenses, making it the world's second best-performing hedge fund for the year, according to 2013 data assembled by Barron's.
"The recent short position in Ligand Pharmaceuticals (NASDAQ:LGND), which is based on extensive research that affirms the stock is radically overvalued and essentially insolvent, has contributed to the fund's recent outperformance," said Emmanuel Lemelson, Chief Investment Officer of Lemelson Capital Management. "Additionally, Ligand is indicative of an irrefutable bubble in biotech stocks as explained in Lemelson Capital'sJune 16(th) research report, a sentiment resonated in the Federal Reserve's Monetary Policy Report earlier this week," he said.
"From time to time, deep value and special situations have continued to be available in U.S. markets, such as Kulicke & Soffa Industries, where the fund continues to maintain its substantial long position," Lemelson added.
For the 22 months since its September 2012 inception (through June 30, 2014), The Amvona Fund has returned a compounded annual gain of 83.59 percent (57.59 percent net) and overall gain of 204.36 percent (130.20 percent net). On three occasions during the last year, The Amvona Fund has been ranked among the world's top performing hedge fund by Barron's.
Disclosure: Lemelson Capital is long shares of KLIC and WWE and short shares of LGND
Keywords for this news article include: Finance and Investment, Investment and Finance, Lemelson Capital Management, Lemelson Capital Management Llc.
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