The January effect – where beaten down stocks that were sold at the end of the prior year for tax loss harvesting rebound in January – was very strong this year. After a particularly difficult year for the broader market in general and growth stocks in specific, the S&P 500 rose 4.64% in January and the Nasdaq registered gains of nearly 11%.
It was good to see that our broadly diversified portfolio with long positions, short positions and merger arbitrage positions generated gains of 8.34% in January and is currently up 30.46% since inception.