Privet Fund Management LLC manages investment partnerships focused on making event-driven, value-oriented investments in small capitalization companies across all levels of the capital structure. Privet’s goal is to produce high long term absolute returns with low correlation to the broader markets.
Privet utilizes a research intensive approach, delving deep into business and situational fundamentals to identify low valuation investments tied to specific catalysts. Because of the exceptional knowledge threshold necessary to initiate investments, the Fund is run in a concentrated manner to ensure only the highest conviction positions influence performance.
We believe that the "institutionalization" of the hedge fund industry has forced the vast majority of asset managers to myopically focus on liquidity and volatility management at the expense of returns. This dynamic has dramatically increased the number of companies for which informational asymmetry can be unearthed. In seeking to exploit this market inefficiency, the Fund targets small cap companies that have public market valuations significantly below our estimate of the private market value of the enterprises. Specific catalysts are identified or, if necessary, created that will drive convergence of public valuation and intrinsic value.