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Waterstone Capital Management launches distressed fund

Wednesday, March 28, 2012

Bailey McCann, Opalesque New York:

Waterstone Capital Management, L.P. a Minnesota-based credit hedge fund manager is launching a distressed debt fund. The fund - Waterstone Distressed Opportunities Master Fund, Ltd. will use a distressed debt strategy carved out from the firm’s flagship Waterstone Market Neutral Master Fund, Ltd and will launch on April 2, 2012.

Chief Investment Officer and firm founder, Shawn Bergerson, and Portfolio Manager Kevin Cavanaugh, will manage the fund. Kevin Cavanaugh, portfolio manager, has 12 years of investing experience from Greenwich Capital (RBS) and JP Morgan. Shawn Bergerson, chief investment officer, has 24 years of credit experience and a 12 year public track record annualizing more than 14%.

The new fund will remain consistent with Waterstone’s existing strategy of being directionally long in performing markets, directionally short in underperforming markets. According to managers, the goal of the fund is to exhibit less downside than conventional distressed funds and offer more liquidity. Waterstone has noted that the fund will incorporate more single name shorts than other distressed funds.

The fund will have two dedicated distressed analysts from Stark and Quattro, along with a six sector specialists, one quantitative risk analyst and two traders. The traders will come from within Waterstone’s existing staff and have an existing track record together. Berger......................

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