Short Position in Ligand Pharmaceuticals, Long Position in Kulicke & Soffa Industries Contribute to 87.22 percent Net TTM Return
Marlborough, Mass., July 17, 2014, —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 (NASDAQ:LGND), a previous short position in World Wrestling Entertainment (NYSE:WWE) and its current long position in Kulicke & Soffa Industries (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.
“The recent short position in Ligand Pharmaceuticals (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.
“From time to time, deep value and special situations have continued to be available in U.S. markets, such as Kulicke & Soffa Industries (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 performance data represents the performance of The Amvona Fund LP (the “Fund”). The net return results reflect the deduction of:(i) a quarterly asset management fee of 0.25%, payable in advance; (ii) a quarterly performance allocation of 25%, subject to a high-water mark and a 6% annualized hurdle rate; and (ii) all other transaction fees and expenses incurred by investors in the Fund. During the time period shown, the Fund used only those investment strategies disclosed in the Fund’s Private Placement Memorandum, and there were no material market or economic conditions that affected the results portrayed. Results are compared to the S&P 500 for informational purposes only. The Fund’s investment program does not mirror the S&P 500 and the volatility of the Fund’s investment program may be materially different from the volatility of the S&P 500. The performance figures include the reinvestment of any dividends and other earnings, as appropriate. Past performance is not necessarily indicative of future results. All investments involve risk, including the potential loss of principal.
Annual and Interim reports are available at www.lemelsoncapital.com
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