13D Activist Fund Posts 19.57% Return For 2016

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13D Activist Fund Posts 19.57% Return For 2016

Highlights the Benefits of Pure, Diversified and Complete Exposure to a Successful Strategy

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2016 Hedge Fund Letters

New York (January 17, 2017) – The 13D Activist Fund (DDDIX) reached its five-year milestone at the end of 2016. The Fund posted a one-year return of 19.57%, net of fees and expenses, as of December 31, 2016 compared to 11.96% for the S&P 500, and a five-year average annual return of 15.27%, net of fees and expenses, compared to the S&P 500 average annual return of 14.79%.

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The 13D Activist Fund is not a hedge fund replicator, quantitative fund or an activist investor. It is a qualitative, event-driven mutual fund that analyzes activist catalysts of companies that have been engaged by activist investors and constructs a portfolio of approximately 30 companies that it believes offer the most compelling activist catalysts. The Fund is managed by Ken Squire, who founded the premier institutional research service on shareholder activism in 2006, has been writing the Activist Spotlight column in Barron’s since 2007, and hosts the industry’s largest shareholder activist conference.

13D Activist Fund

In the following Q&A, Ken Squire addresses why a pure play on activism is an effective investment approach, the fund’s strategy, and the outlook for activism in 2017.

Q. What is the approach of the 13D Activist Fund?

Our approach is to create the purest, most comprehensive exposure to shareholder activism in a liquid, transparent vehicle at a lower cost than hedge funds. The Fund is long only with minimal cash, so we provide exposure to only activist situations, and not only to the top activist hedge funds, but also engagements of activists who do not take outside money (Carl Icahn), activists who are a small part of a larger multi-strategy fund (Elliott Associates), and some lesser known yet highly skilled activist funds.

Q. You’ve described your fund as an oxymoron—a diversified portfolio of concentrated positions. What do you mean by that?

Most activist hedge funds are highly concentrated with a vast majority of their capital in their top four to eight positio