Raging Capital Finding Alpha In Short Exposure; Shorts Valeant And Lending Club

When looking at Raging Capital’s second quarter letter to investors – and reviewing their background – one gets the sense they are different.

With the S&P 500 up near 3.8% as of the July 14 investor letter, Raging Capital Fund (QP) Series B was up 14% year to date. But its more than beating the S&P 500 or even the HFR Hedge Fund Index – down -3.9% over the same period. Raging Capital’s Rocky Hill, New Jersey-based Chairman and Chief Investment Officer William Martin of the famous activist fund thinks differently. It can be seen in his letter to investors – deriding “classic Wall Street” short-term thinking – but more specifically in the performance numbers. It’s not the long exposure...