MM&E Capital saw small losses both of their Investment Trusts, No. 1 and 2, in December. Trust No.1 recorded a loss of -0.98% for the month, bringing it's return for the year to -4.88%, while Trust No.2 was down -1.01% for the month and -5.98% for the year. The manager has exited a loss making position in Indophil Resources after the company revealed that, despite assurance to the contrary, a takeover deal with Alsons Corporation may not proceed.
Trust No. 1 is MM&E Capital's oldest fund with an inception date of July 2002 and approximately A$69.9 million under management. Trust No. 2 began investing in July 2004 and currently has A$9.9 million under management. Trust No. 1 is closed to new investors while Trust No. 2 is currently open with a minimum investment amount of A$25,000. Both Trusts aim to deliver returns of 15% p.a. (gross of fees) with volatility of 5% p.a. or less regardless of movement in the equity market index. Trust No. 2 is managed in a near identical fashion to Trust No. 1 and neither Trust employs leverage.
MM&E Capital is a dedicated Australian event driven hedge fund manager which employs strategies in takeover and demerger arbitrage, convertible securities arbitrage, capital raisings (i.e. IPOs, Placements, Sell Downs and Rights Issues) and Buy/Write dividend stripping.
