Value-focused hedge fund Cooper Creek Partners generated a net return of 7.3% during 2015, compared to the S&P 500 and Russell 2000, which returned 1.4% and -4.4%, respectively. The strong outperformance was driven by a 26% return from the fund’s short portfolio and hopes to gain more this year with a favorite long position, Seritage Growth Properties (but not Sears Holding).

Since inception during November 2008, the fund has produced a cumulative return of 84.3% and a compound annual return since inception of 8.9%. At the end of last year, the fund had a gross exposure of 183%, 96% long and 87% short for a net exposure of 9%. The fund’s average net exposure since inception is 11.3%, according to a letter to investor reviewed by ValueWalk.

Seritage Growth Properties 2

Cooper Creek’s top five largest long holdings as a percentage of NAV at the end of last year were Volt Information Sciences (9.4%), Krispy Kreme Doughnuts (7.9%), Newcastle Investment (7.2%), Seritage Growth Properties (6.9%) and Francesca’s Holdings (6.6%).

Cooper Creek: Seritage Growth Properties

Cooper Creek’s fourth-quarter letter illustrative investment idea is Seritage Growth Properties, a stock the fund started to buy during the second half of last year.


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