Minnesota’s Waterstone Launches Second Distressed Fund

Mar 28 2012 | 7:47am ET

Minnesota-based credit hedge fund manager Waterstone Capital Management is launching a second fund.

The Waterstone Distressed Opportunities Master Fund will launch on April 2 and be run by the firm’s chief investment officer and founder, Shawn Bergerson and portfolio manager Kevin Cavanaugh. The fund will employ the same distressed debt strategy as the firm’s flagship Waterstone Market Neutral Master Fund.

Cavanaugh, who joined Waterstone in 2009, has 12 years of investing experience from Greenwich Capital and JP Morgan. Bergerson has 24 years of credit experience and a 12-year public track record annualizing over 14%. Bergerson’s co-founder and Waterstone chief operating officer, Martin Kalishfirm, has 20 years of experience in the financial industry from Bear Stearns, Appaloosa and Deephaven Capital Management.

The fund will be directionally long in performing markets, directionally short in underperforming markets and balanced in uncertain markets. The fund will incorporate more single-name shorts than most distressed funds and the use of leverage will be moderate. The fund will generally be fully invested and underlying investments will be more liquid than those of the average distressed debt fund.

The investment team includes two dedicated distressed analysts from Stark and Quattro while the investment team comprises six sector specialists, one quantitative risk analyst and two traders with an average of 15 years’ experience.

The fund will have a one-year soft lock, quarterly with 90 days' notice.

Waterstone Capital Management, founded in January 2003, has a 13-member investment team and manages $1.7 billion.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.