Emerging Manager Launches Deep Value Fund

Dec 1 2005 | 9:47pm ET

New York-based hedge fund Watsek Value Management has just launched its first fund, the Watsek Deep Value Fund, with $5 million in commitments.

Randall Watsek, president and portfolio manager, will invest in stocks of 15-25 companies he believes to be deeply undervalued, including both those located in the U.S. and overseas.

"Value investors look at the cheapest 40% of firms, I look at the cheapest 5%," said Watsek, a former research analyst at Dalton, Greiner, Hartman, Maher & Co.

The minimum investment in the fund is $500,000 and there is a one-year lockup. The management fee is 1% with 20% profit participation.

Watsek takes a bottom-up approach to investing, looking closely at individual companies and their financials. He won't limit himself to any particular sectors, but he also won't invest in companies if he doesn't understand the fundamentals of their business. His ideal time horizon for an investment is two to five years, but he will take short positions in certain circumstances, such as when a stock is extremely overvalued or he is making a pairs trade.

Watsek, whose fund is currently majority cash, plans to spend the next three months immersed in research, carefully selecting stocks. He hopes to be fully invested at the end of that time, and also predicts that he will soon have another $20 million in commitments.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

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.