Waterstone Capital Management takes an opportunistic approach in its investing philosophy,
using multiple trading strategies, with a specialization in convertible securities. Our objective
is simple, to outperform the competition.

Our current philosophy is two-fold: 1. to outperform the competition and 2. Waterstone expects
to provide positive returns when many other strategies are losing money.




Opportunistic Approach
• Returns mostly from alpha, not beta as evidenced by low correlation to many indices and
other hedge funds, including convertible funds.
• Synergistic skills, deep experience and demonstrated success in credit, equity, convertibles,
volatility products, events, trading and quantitative methods.
• Return drivers have differed over the years and have been in sync with the best opportunities.

Portfolio Manager’s Track Record and 22 Years Experience - Shawn Bergerson
• Buy side PM experience in bad convertible markets.

Waterstone Diversifies Your Portfolio - Generates Alpha and Thinks Independently
• Waterstone's experience in credit research, trading and valuation.
• We take contrarian positions based on confidence in our fundamental research and relative
valuation skills, and these have proven over time to be right.