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Komfie Manalo, Opalesque Asia:

Bob Treue has re-opened his $666m hedge fund Barnegat to outside investors as opportunities improve. In his monthly report to investors, Treue said that Barnegat Fund has increased the size of its positions and expects it volatility to come back to its long-term target of 8-10%.

Barnegat lost 1.8% in February (-2.5% YTD). The fund’s compounded annual rate of return since launch in 2001 is +16.7%/year.

Treue said, "As the result of interesting moves in fixed income markets around the world, opportunities have improved. We are re-opening the fund to new investors. We have increased the size of our trades to take advantage of new and increased mispricings. Previously, we had closed the fund to new investors in January 2015 as opportunities lessened."

Treue said that Barnegat offers an incentive to buy low when the fund is down. The hedge fund does not charge incentive fees to any investors (new or old) until the fund has reclaimed its high-watermark.

He added, "Our ability to predict our returns is poor. Our strength lies in finding anomalies that eventually will be profitable and holding them until they are. For example, in March 2008 after Bear Stearns teetered on the edge of bankruptcy, we re-opened the fund, telling investors we had great opportunities and they should invest. The share price in the spring of 2008 was around $2.50. It is now around $10.21, so that advice was cor......................

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