MM&E Capital's Investment Trust No's 1 & 2 both gained +0.22% in January, bringing their respective 12 month returns to -5.5% and -6.4%.
Both funds gained from the successful completion of the private equity bid for MYOB, the narrowing of the spread on Arrow Energy's bid for Pure Energy and the exit from convertible positions in Commonwealth Bank and Macquarie Airports. These were partially offset by convertible losses on Rio Tinto and Wesfarmers. Looking ahead the funds will continue to increase their position in St George convertibles, soon to be redeemed due to the merger with Westpac, and build a position in the wide spread between Rio's UK and Australian listed shares.
