Having mentioned most of the leaders, I wanted to congratulate Water and his Fortunato and the Amontillado Hedge Fund for their recent rise in the ranks. As of the end of Q1, his investors are up nearly 15% and considering a celebratory drink while fairing a bit better than their namesake Fortunato. Two notable short positions have been recent winners for the fund - Fairmont Santrol (FMSA), a frack sand company that saw a reversal of recent fortunes as oil prices fell this month signally weaker demand for their commodity production linked product (now -38%, good for a short) and WINS, a sketchy Chinese lending business that had over doubled earlier this year to very loftly levels but crashed in the last two days as two articles raised more questions than answers about their seemingly non-existent business (now -25%, good for a short, down from +50% just two days ago).1. Better Lucky Than Good, Tanelorn 75.82%
2. Opulent Hammer Fund, nmanieri 31.45%
3. The Ryzen Fund, b42 28.53%
4. Ladies First, LadyGeek 24.86%
5. Fortunato and the Amontillado Hedge Fund, Water 14.72%
Interestingly, one short seller used a Freedom of Information Act request to inquire into the SEC's records on WINS, and while they were denied, the disclosure of the reason ("disclosure of the requested information may hurt ongoing enforcement actions") basically confirms the company is under serious regulatory scrutiny. They may also have fraudulently convinced Russell to add them to the major small cap index by claiming an office in NYC was their headquarters even though no one is answering the phone there and all the business, such as it is, seems to be done in China (non-US-based businesses are typically not eligible for the Russell 2000 index of small to mid sized US stocks). An effort by an insider to sell a majority stake in WINS for a mere 1/10 of its market price(!) also raised questions as to the market valuation, and even that seems to have hit a stumbling block as the Hong Kong based potential buyer is facing regulatory scrutiny there for their past business dealings. I expect we have not seen the end of the WINS saga, and Fortunato fund investors may yet see further gains on their short position.
current standings - 2017 hedge fund contest
Best of luck to all for the coming quarter.