Waterstone’s flagship fund was up 2.72% in the month of January. The fund returned 0.75% in 2011. The hedge fund had a very impressive 2008, with a positive return of 12.07%.
The firm uses various types of arbitrage using a value based approach to investing.
The market neutral fund has assets under management of over 1.5billion today.
Yost Partners was up 0.8% for the first quarter, while the Yost Focused Long Funds lost 5% net. The firm's benchmark, the MSCI World Index, declined by 5.2%. The funds' returns outperformed their benchmark due to their tilt toward value, high exposures to energy and financials and a bias toward quality. In his first-quarter letter Read More
The fund managers are catious about 2012, and believe that the market is experiencing some irrational exuberance from investors. The hedge fund is 48% hedged currently.
Top holdings below:
Top 5 Net Exposures
HOLX (NR) long convertible bond
AMD (B+) long convertible bond
LEH (NR) long corporate bond
NT (NR) long corporate bond
MAC (NR) long convertible bond