WEST PALM BEACH, FL (www.hedgeco.net) – Joe Feshbach along with his brother, Matthew and Kurt managed a high-profile short-selling hedge fund during the 80�s. According to news reports, Joe isreturning to the world of hedge fund management. He recently launched a new hedge fund, called Joe Feshbach Partners LP, the new portfolio will buy securities of troubled firms using a strategycalled “crisis investing.” The new fund will also seek out stocks and securities experiencing negative publicity, due to events such as government investigations.
Feshbach said, “I’m looking for companies with strong underlying businesses that are profitable, have strong balance sheets and where the likely impact of a crisis has been overestimated by the market, I use crisis as a trigger point to start researching an opportunity” he added.
During the 80�s Joe and his brothers were credited of building a $1 billion hedge fund business through an aggressive investment philosophy of short selling. However their portfolios suffered losses during the decade of the 90�s and subsequently they folded their hedge funds. Joe Feshbach has held chairmanship of several companies during the 90�s such companies includes Curative Health Services, and QuadraMed Corp.
Mr. Feshbach now believe the strategy of shortselling is a bad strategy, because according to him, �there are so many long/short equity hedge funds out there shorting stocks.” He also believes that emphasis on corporate governance and improved accounting methods will ultimately lead to cleaner corporate accounting, and such development will lead to fewer scandals thereby reducing shortselling opportunities in the markets.
He also noted that his new hedge funds may also apply shortselling techniques when suitable opportunities are discovered, he said his new fund will hold up to 10 positions trading securities of companies with between $250 million to $3 billion in market capitalization. No details about fee structure and minimum investment requirement for the new hedge fund were immediately provided.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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