Chicago, IL, United States (4E) – Chicago, Illinois-based hedge fund manager AM Capital Advisors announced Thursday it outperformed the U.S. stock market and other funds in 2012 despite the year’s volatility.
AM Capital Advisors President Aaron Miller said the fund gained 62 percent against the Dow Jones’ 7.22 percent, NASDAQ’s 13.62 percent and the S&P 500′s 13.29 percent in 2012. For the month of December, the fund was up 2.57 percent versus the Dow Jones’ 0.58 percent, NASDAQ’s negative 0.03 percent and the S&P 500′s 0.69 percent, he added.
Since its inception in 2009, AM Capital’s return was up 82.74 percent against the Dow Jones’ 55.12 percent, NASDAQ’s 63.55 percent and the S&P 500′s 54.88 percent over the last three years, according to Miller.
Miller said the average hedge fund gained only 6 percent last year and 80 percent underperformed the S&P 500.
“My core stock positions, which are concentrated among a few stocks, did not outperform the market by a significant margin, but my over all derivatives did,” said Miller.
He attributed the fund’s performance to his core strategy of relying heavily on research.
“We try to identify stocks where there’s a catalyst on why it should have an up or down move. If we identify stocks that in our opinion are currently trading at prices they should not be on, we go long or short those stocks,” Miller explained.
Miller said AM Capital Advisors remains bullish this year and confident that the fund will outperform all U.S. stock indexes despite major challenges.
“From the overall current prices in the market, I don’t think 62 percent performance is realistic in 2013, but that doesn’t mean 25 to 30 percent isn’t obtainable,” he said.
Miller said 2013 is going to be a difficult year because the market is not cheap. However, he said it doesn’t necessarily mean the market will go down.
“As long as Bernanke continues to accommodate, equities are going to be a much more enticing place to be than bonds or cash,” Miller said referring to the Federal Reserve chairman. “If unemployment reaches the fed’s target rate of 6.5 percent, I would expect to see interest rates rise rapidly and that will have a negative effect on equities if one wants higher prices.”
Unless there are external event that will influence the markets, Miller believes the market will have some stability in 2013. He said opportunities in the automobile and gold mining sectors have strong potential in 2013.
He cautioned about developments in Europe, the Middle East, and the U.S.; the constant political gridlock; and the overall world debt problem as well as the coordinated monetary accommodating around the world.
“This is not the business to be in if you can’t tolerate issues because there’s always going to are potential head winds going on,” Miller said.
AM Capital strategies are focused on qualified institutional and individual investors. Its investment team applies a disciplined investment process and risk management tools to construct diversified hedge fund portfolios in order to achieve the firm’s clients’ risk-adjusted return objective.