Lemelson: Note Regarding Today’s Extraordinary Market Volatility

Yesterdays Selloff Extraordinary Market Volatility3844328 / Pixabay

Lemelson Capital Management, LLC released the following note today to investors in The Amvona Fund, LP. regarding today’s extraordinary market volatility.

Note Regarding Today’s Extraordinary Market Volatility

Dear Partners,

The Dow fell 473 points today, about 1.79%, after plummeting as much as 648 points intra-day. The S&P 500 dropped 1.65%. Today marked the worst day for the Dow since January of this year. The Nasdaq sank 1.96%. All 30 of Dow components fell, and all 11 S&P sectors were lower in the broad sell-off.

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Q1 hedge fund letters, conference, scoops etc

However, among the carnage was one particular stand-out, The Amvona Fund LP’s chief commitment, Geospace Technologies (NASDAQ: GEOS) which appreciated an extraordinary 3.77 percent (The Amvona Fund, LP as a whole was up significantly more than that today and management was actively buying stock in the market during the bloodbath).  While the road has hardly been smooth, Geospace stock has gained a remarkable 40.57 percent in the last twelve months, versus just 10.47 percent for the S&P 500 Total Returns Index. Despite the significant price appreciation, management continues to believe the stock remains dramatically undervalued. Notwithstanding the volatility, The Amvona Fund, LP is on track to have on of its best years since inception.

Ligand Pharmaceuticals (NASDAQ: LGND), a company management has openly declaimed against for years,1 actions that have resulted in an ongoing battle with US regulators, was not spared in the sell-off today, falling 2.62 percent (dropping as low as $119.50 intra-day). Since September 28, 2018, Ligand’s shares have fallen an incredible 56 percent, dramatically under-performing the benchmark S&P 500 index. Management believes Ligand’s stock has much further to fall.


Rev. Fr. Emmanuel Lemelson - CIO

Lemelson Capital Management, LLC

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About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

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