EMJ Capital investment strategy gains 56 percent year-to-date on strength of technology-focused holdings, positively profiled...
May 27 2020 - 11:07AM
EMJ Capital Ltd.’s investment strategy (the Strategy) had a
year-to-date(1) total return of 56 percent primarily due to a
concentrated portfolio of long and short equity investments that
rose despite the coronavirus-based market decline in March, as
described in a May 6, 2020 Bloomberg article. The article
spotlighted EMJ Capital Ltd. founder Eric Jackson’s focus on deep
research, data science and his network of experts, and reported
that EMJ Capital was up 28 percent in Q1 2020 while only 5 of 61
hedge funds tracked by Venator Capital Management Ltd. posted
positive returns at the same time.
See article: EMJ Capital featured in
Bloomberg.
“The strategy has yet to have a negative month
in 2020,” said Eric Jackson. “We’ve gained tremendous
outperformance from our long positions and continue to see many new
investment opportunities to take advantage of on both the long and
short side.” The Bloomberg article highlighted Jackson’s positions
in Zoom Video Communications Inc. (NASDAQ: ZM) and Delivery Hero SE
(DHER: GR) and noted that “Jackson tries to hunt down data on
technology usage that will lead him to winners” and that he
doubled-down on his Zoom holdings when he noticed a sudden spike in
downloads of the Zoom app in China more than a month before the
coronavirus was declared a pandemic.
Jackson’s Strategy typically includes
investments in 11 to 20 long equity positions and the same number
of short equity positions. “To be selected among our longs, we have
to have high conviction that a stock has a reasonable chance of
doubling or tripling over the next two to three years, while our
shorts are intended to be profit centers,” said Jackson.
“While the FAANG names are great companies,
they’re unlikely to double and triple in the next two to three
years,” Jackson said. “We are constantly looking ahead for the next
big winners to drive our gains in 2021 and beyond, and I’m excited
about our current portfolio and some of the opportunities we’ve
identified for future investments.”
The Strategy’s 2019 full-year performance was a
total return of 11.85 percent. As of May 5, 2020, the Strategy had
a total return of 130.78 percent, or compound annual growth rate of
45.01 percent, since its inception in October 2017. Indicated rates
of return for the Strategy are historical total returns during the
relevant periods and assume reinvestment of all dividends. Returns
are net of fees (except the 2020 year-to-date performance figure
quoted in the Bloomberg article which was a gross return) but do
not take into account withdrawal charges or income taxes payable by
any investor in the Strategy, which may reduce the return.
Additional important information about the investment performance
of the Strategy is available
here.
About EMJ Capital
Ltd.
EMJ Capital Ltd. was founded in 2017 by Eric
Jackson and is registered with the Ontario Securities Commission as
a Restricted Portfolio Manager that advises separately managed
accounts for sophisticated investors who qualify as “permitted
clients” and are not individuals, using the same concentrated
investment strategy. For more information on EMJ Capital Ltd.,
please contact Eric Jackson, Founder, President and Portfolio
Manager; phone: (416) 897-9263; email: info@emjcapital.ltd; web:
www.emjcapital.ltd.
(1) - Return measured from the period beginning
January 1, 2020 and ending May 5, 2020.
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