Focus on risk and liquidity guides Maga through the small-cap cycle

Wed Jun 24, 2009




Since starting to run hedge fund money in 2000, and with the Maga Smaller Companies strategy since 2004, Andrew Gibbs and his colleagues have achieved impressive results

Very few hedge funds in Europe managed to call the inflection point in equity markets quite as well as Maga Smaller Companies, run by Otus Capital.


The Otus Capital Management team


The firm wrote to investors going into August 2007 stressing that the bull market was over - and acted on that view by cutting its net market exposure from over 53% to under 20% in the space of 20 days.

Otus founder Andrew Gibbs says: "During the bull run of 2005, 2006 and the early part of 2007, we knew that prices were high. The market tested us a number of times, but we didn't cut and run because capital flows were strong enough to sustain the situation. When the credit markets seized...

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