Formidable Vows to Stay Course After Fund’s 83% 2020 Gain


Formidable Asset Management LLC, which gained about 83% last year, said it plans to take a nimble and active approach this year, with the volatility of 2020 showing few signs of slowing down.

“Though we are early in the year, the truly bizarre events, both societally and in terms of markets, seem to be continuing in 2021,” the hedge fund’s Chief Executive Officer William Brown and Chief Investment Officer Adam Eagleston wrote in a letter to clients, seen by Bloomberg.

Stocks that were “retail favorites” in 2020 could go still higher this year, they said, “buoyed by further fiscal stimulus and gains from prior winnings rolled forward.”

The main contributors to the fund’s 2020 performance were its positions in green energy and electric vehicle-related stocks.

According to the letter, some of the winners for the fund in 2020 included Nano One Materials Corp., Flux Power Holdings Inc., Maxar Technologies Inc., Workhorse Group Inc. Some 2020 “heartbreakers” included a position in AMC Entertainment Holdings Inc.’s debt and put options on GSX Techedu Inc.

Formidable declined to disclose the size of assets under management. Brown, who founded the firm in 2013 in Cincinnati, previously served as managing partner of BBK Capital Partners and as senior vice president at Raymond James. Eagleston was formerly a portfolio manager at Driehaus Capital Management LLC.

©2021 Bloomberg L.P.

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