Michael Zimmerman’s Prentice Capital had an excellent year

Prentice Capital's Long/ Short Equity Fund was up 26% net for the fourth quarter, bringing its full-year return to 53.6% for 2020. In his fourth-quarter letter to investors, which was reviewed by ValueWalk, Michael Zimmerman said the development of COVID-19 vaccines, continued easy money and clarity in the election drove a risk-on environment.

Q4 2020 hedge fund letters, conferences and more

The S&P 500 Total Return Index was up 12.1% for the fourth quarter. Zimmerman said the fund's long positions contributed 40.5% to its fourth-quarter returns, while its short positions subtracted 7.4%. In all of 2020, Prentice Capital's longs contributed 74.4%, while its shorts subtracted 17%.

The fund has a...