Lemelson Capital Management, LLC, a private investment management firm, today 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 Inc. (NASDAQ:LGND), a previous short position in World Wrestling Entertainment, Inc. (NYSE:WWE) and its current long position in Kulicke and Soffa Industries Inc. (NASDAQ:KLIC).
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 percent. 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.
Lemelson Capital’s short positions
“The recent short position in Ligand Pharmaceuticals Inc. (NASDAQ:LGND), which is based on extensive research that affirms the company 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’s June 16th research report, a sentiment resonated in the Federal Reserve’s Monetary Policy Report earlier this week,” he said.
Walter Schloss isn’t a name many investors will have heard today. Schloss was one of the great value investors who trained under Benjamin Graham and specialized in finding cheap stocks. His track record was outstanding. In Warren Buffett’s 1984 essay, the Super Investors of Graham-and-Doddsville, he noted that between 1956 and 1984, Schloss’s firm returned Read More
“From time to time, deep value and special situations have continued to be available in U.S. markets, such as Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), 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 for its clients.
About Lemelson Capital Management
Lemelson Capital Management, LLC is a private investment management firm focused on deep value and special situation investments. The firm’s flagship fund, The Amvona Fund, has been named repeatedly one of the world’s top performing hedge funds. For more information, see: http://www/lemelsoncapital.com.
The Amvona Fund, L.P.
The Partnership’s investment objective is to achieve better than average returns by investing in common stocks of fundamentally sound companies that are run by superior managers and are selling at a substantial discount to “intrinsic values.” The Investment Strategy is based on an investment philosophy that believes financial markets are basically efficient in properly appraising the value of most companies in the long run, but that securities are often mispriced in the near term. Therefore, at times solid enterprises run by good managers become available at a significant discount to their “intrinsic values.” By purchasing securities under these conditions, the Partnership seeks to greatly reduce the risk of loss to its principle, while consistently earning above average returns.