High Return Fund?
Got an interview with this HF called MM Capital. They're small, but have posted outsized returns the last quarter and I'm smelling something strange. It may be legit but I was wondering if someone could look at the 13F (SEC filings) and provide some color on what bets this firm made that turned up roses.
Much obliged,
The Illustrious
Monkeysama
website: http://www.mm-capital.com/
SEC filings: http://fundville.com/fund/3583/MM-CAPITAL-LLC
Firsttly, they're not that small--they have $3B in AUM. They appear to be equity long-short with an options overlay strategy.
Their returns are exceptional for a single quarter. I don't see how they would have made such monstrous returns given the outright movements in the underlying shares unless they have a pretty wide mandate. They must be allowed to make volatility plays, and I suspect they do a lot of 'doubling down' (shorting the underlying, and purchasing the put simultaneously--not exactly a hedged position, and quite risky, but it juices your returns).
where did you find their returns? i hope its not from reading the 13f...
They have 13f for the last two quarters so you can give a return basis for the last 6 months. It is enormous and so, to my mind, quite risky. Also, yes it is only 2 data points and 6 months of returns.
But the go from 1 BB to 2.8 BB. Craziness.
I modify my previous statement. It's entirely possible they just attracted new capital.
Duh. That's the most likely reason.
looks like they do a pricing arb with option futures. focusing around index vs individual stocks
Pretty solid for a 5yr gig. Don't see it going on after that due to spreads diminishing.
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