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

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

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.