From Precy Dumlao, Opalesque Asia:

Chicago, Illinois-based hedge fund manager AM Capital LLC posted a +6.06% gains in June to offset the -12% losses registered in May versus the DOW index + 3.94%, NASDAQ +.44%, and the S&P 500 index at +3.99% during the same month, AM Advisors President Aaron Miller told Opalesque in an exclusive interview.

Since inception in July 2009, AM Capital’s performance was up +42.92% versus the same time period for the DOW index +52.47%, NASDAQ 58.96%, and the S&P 500 index at +47.92%.

Miller said that the fund’s reversal of fortune in June was brought about by his exposures in derivates after his core stock positions underperformed in May. "Hopefully this will translate into positive returns going forward because I think my core positions have much more upside potential than downside," Miller said.

AM Capital strategies are focused to qualified institutional and individual investors. Its investment team applies a disciplined investment process and risk management tools to construct diversified hedge fund portfolios in order to achieve the firm’s clients' risk-adjusted return objective.

In the near-term, Miller expects some opportunities for alpha considering that current expectations are low given the market volatility in the U.S. and Europe. However, Miller said that once the U.S. elections and politics shift into high gear and get more attention, specifically around October, "I think that will create a negative environment for the markets."

Already, there are signs that the political scene in the U.S. are heating up as candidates for both the Republicans and Democrats opened their respective campaign with scorching attacks against each other, manager reported, Asian Tribune.

The Obama campaign began a TV ad blitz in May with an attack against Mitt Romney and questioning the Republican frontrunner’s commitment to the middle class because of his former career as co-founder of Bain Capital.

Romney camp answered with Obama’s alleged failure to create new jobs and advance the U.S. economy, the report added.

Miller further commented, "However Europe is going to be a constant issue and with a global economy it will impact certain sectors. On the other note it will lower expectations making easier for economic data to surprise in a positive way."

Miller predicted a market decline of between five and 10% should Obama secure a second term. He said a Romney win would have an instant positive effect for the markets.

"I think third quarter the market has potential to go higher from its current price. Fourth quarter I think there is going to be too much going on in global and United States to have a big move up and a potential for a move down depending on what happens with our elections," he said.

When asked to comment on his short-term goals, Miller said he would try to take advantage of undervalued sectors such as oil, energy, and gaming sectors in the near-term. For his medium-term goals, Miller explained that realistically, he predicted the markets to go up another between five and 10%.

But he does not see an enormous move without the United States fiscal policies getting resolved, and the U.S. housing space showing some positive signs. "Europe is not making so many headlines," he said.